How North American Milk Became The Model Of Sustainability

Milk is the cornerstone of not only a healthy diet, but also a healthy segment of the economy.

According to data from the International Dairy Foods Association (IDFA), the U.S. dairy industry helps generate 3.3 million jobs, more GDP than the auto industry, and billions of dollars in federal, state and local taxes. None of it would be possible if not for the American dairy farmer.

Interestingly, dairy farms have been under considerable pressure for many years. The work they do is often mischaracterized as inefficient, inhumane and environmentally adverse, none of which is true.

The number of U.S. dairy farms has also continued to dwindle. In fact, U.S. dairy farm attrition has been averaging roughly 8-12% per year, according to Fernando Cuccioli, Executive Vice President for the Americas Cluster at AEM member company DeLaval.

“When I started in the milking equipment business in 1986, the number of dairy farms was approximately 150,000,” added Steve Pretz, President of AEM member company BouMatic. “Now there are only around 30,000 businesses milking cows today.”

But that hasn’t resulted in a loss of production, nor has it led to a rise in unsustainable farming practices. Pretz said he believes this is the biggest untold story in all of agriculture.

“North America, and also Latin America to some extent, have a great opportunity,” Cuccioli said. “We have the resources—the land, water, feed and knowledge. That’s not the case in other places around the world. For example, Europe is going through significant change from a sustainability standpoint. Europe doesn’t have the space for dairy farming like North America does. We do have sustainability pressures here in the U.S. But we’re responding by using new technologies to keep up. That’s why I believe we will really become an export machine and gain even more share of the global dairy market in coming years.”

In the longer-term, perhaps 60 years from now when the population could begin to decline, the U.S. dairy industry will be well-positioned to capitalize on shifting market dynamics. As population declines, average income climbs and more people begin demanding safer, higher-quality food products—something the U.S. and North America are well-respected for. “For the U.S. dairy industry in particular, this is the opportunity of a generation moving forward,” Pretz said.

In the nearer term, it’s about helping feed a population that continues to grow. Pretz said he is a big believer in the idea that high-quality, low-cost food is for everyone. This is where the U.S. approach differs from many other parts of the world.

“In Canada, for instance, they have supply management which works for them,” Pretz explained. “They also have one of the three highest milk prices to the farmer in the world. But that does nothing for the person in Cambodia or somewhere in Africa who is trying to feed their family on what might be $2,000 in annual income.

“Back in 1986, average production per cow per year was around 11,500 lbs.,” Pretz said. “Now, the average is closer to 23,000. Over that same period, the population of cows being milked has declined from 14 million to 9 million. But despite that, yield has nearly doubled. So, in order to produce a pound of milk, carbon footprint has been reduced by more than 70% over the course of my 36-year career. I’m not sure any other segment of agriculture can come anywhere close to that, here or anywhere else in the world.”