RUMINANT NEWS

ZISK 2023 REPORT ILLUSTRATES PROFITABILITY FOR DAIRY PRODUCERS

The Zisk 2023 report shows that dairy producers again expect a great year, surprisingly a little more profitable than 2022. That said not all producers will share in the success. Larger farms are projecting bigger profits than smaller ones. This continues a trend seen last year, which showed that farms with more than 1,000 cows will make a lot more money than those with less, but the 2023 report makes it even clearer that milking more than 5,000 cows is the most profitable. Farms with less than 250 cows will again struggle to break even, despite expectations of another good year for milk prices. On average the 3.6 million cows expect an average profit per cow to rise to $264.3 compared to $254.8 in 2022. Despite some changes in regional dairy profitability rankings, and at the state level, all trends point in the same direction. Larger herds lead to larger profits on U.S. dairy farms, more so than ever. The Zisk reports average herd increased by 10% over the past year, even though more cows are included in this year’s report, and profits per cow are also expected to increase in 2023 by 32% across the country.