News

Dairy sector impact valued at nearly $794 billion

The International Dairy Foods Association says the economic impact of the dairy sector in the U.S. increased by more than $40 billion the past two years.

Matt Herrick tells Brownfield the organization’s biannual report Dairy Delivers showed growth at the end of last year for all sectors with a total economic impact of nearly $794 billion.

“Our sector is just an engine for this U.S. economy,” he says.  “We are just a significant contributor to GDP, to jobs, to wages, to the tax base in states and the national economy.

And he says growth is widespread as dairy processing and production have grown.

“It’s New York, it’s Wisconsin, but it’s also states like Ohio and Illinois,” he says.  “There are a lot of dairy producers moving to states like Kansas and South Dakota, certainly Idaho.”

Herrick says rising consumer demand and increasing exports are driving the growth.  U.S. per capita dairy consumption in 2022 increased by more than 12 pounds per person.

The report also found the dairy industry supports 3.2 million total jobs, $49 billion in direct wages for workers, and $72 billion in federal, state, and local taxes.