Dairy farmers have a unique opportunity to win back some of the market share lost in the past decade to beef.
The dairy industry has been struggling for years to win over consumers who value quality and freshness.
But the industry’s efforts to diversify have fallen short, with many dairy farmers turning to imported milk and soy products, often costing farmers less.
The U.S. dairy industry, which makes up about one-third of the nation’s dairy market, is expected to lose market share to beef and poultry this year.
But dairy farmers have an opportunity to make a comeback this year, says Mike Dannemann, director of the University of North Dakota Dairy Industry Research Institute.
Dannepann, who is also the director of its Center for Dairy Research, says that dairy farmers will be better positioned to respond to consumer needs if they have the resources to diversification.
The industry has invested heavily in marketing, he says, but that will change if the U.N.F.F.’s dairy plan is adopted, which is expected in the first half of 2019.
Diversification could also help the dairy industry compete with other high-value, low-cost producers such as beef and pork producers.
Dairy farmers also will benefit from better technology that makes it easier for them to grow more milk for the market.
But Dannetann says dairy farmers need to look beyond just milk.
Dairy farms have to grow, and if they are not able to do so, the market will shift away from them, he said.
The key to diversifying is diversification in the farm, and this will include diversifying from milk, he added.
The biggest challenge in the dairy market will be for farmers to find new markets for their products.
The market for dairy products has been declining for more than a decade.
Farmers are facing a tough time in many parts of the country as prices for milk and other dairy products have dropped.
But consumers are willing to pay higher prices for dairy.
The price of milk has been steadily falling since 2014.
DANNEMAN: The dairy market is really driven by the price of dairy.
We are going to see more and more farmers going to foreign markets, and we need to continue to develop the technology to keep up with that demand, and that will allow us to have more diversification opportunities in the future.
The problem is, dairy farmers are not diversifying in that way, Danneteran said.
And that is a challenge for dairy farmers.
We have to continue our efforts to grow in that area, but we also need to keep our resources to continue producing and raising our products in the state of North Dakotas.
He says that is going to require a lot of capital investment.