Despite favourable milk prices over the last year, Texas dairy farmers continue to confront problems, according to a Texas A&M AgriLife Extension Service specialist.
According to Jennifer Spencer, Ph.D., AgriLife Extension dairy expert in Stephenville, milk prices remain historically favourable for farmers, and demand for milk and milk products ranging from cheese to ice cream is robust. Nonetheless, she claims that increased input costs are reducing profitability.
Spencer said that Texas is still doing well and adding dairy capacity and cows. Texas surpassed Idaho to take third place in milk output during the first six months of 2022. Nevertheless, the summer heat limited output, and Texas finished fourth for the year.
Texas dairies produced 15.1 billion pounds of milk as of December 1, a 6% increase over the same period previous year. According to the US Department of Agriculture, Spencer estimated the 2022 total to be approaching 16 billion pounds by the end of the year, up from 15.6 billion pounds in 2021.
Prices stayed over $23 per hundredweight in 2022, after oscillating between $23 and $25 per hundredweight. The price per hundredweight averaged $23.67.
But, dairy farmers faced additional hurdles this year as increasing expenses reduced prospective revenues, according to Spencer.
Feed costs account for almost 60% of dairy farmers’ expenditures on average, she claims. Drought and high fertiliser costs hampered forage supplies this year, and prices for cereals and supplementary feed like cotton seed rose considerably.
Fuel prices and labour shortages also hampered dairy operations more than in a usual year, according to Spencer.
“Dairy farmers had greater possibility to be successful in 2021 because they didn’t have to battle to keep up with growing feed and other expenditures,” she added. “Despite the favourable pricing, it was a difficult year.”
Texas dairies are continuing to follow industry trends in which dairy size and total output are increasing but the number of operations is decreasing.
Texas dairy output is expected to grow.
Texas’ dairy output might increase significantly in the coming years as processing infrastructure improves to handle milk. Several soft cheese production facilities, such as cottage cheese, cream cheese, and other spreadable cheeses, are set to expand or launch in the next two years to fulfil rising demand.
The cheese industry was the primary destination for the 226 billion pounds of milk produced in the United States in 2021. 1 pound of cheese requires 10 pounds of milk.
Amarillo’s facility will open later this autumn, and Stephenville’s facilities will likely grow. Another plant in Lubbock is set to open in 2024, while a new facility in western Kansas will receive milk from the Texas Panhandle.
Dairies in the Texas Plains generate around 80% of Texas milk.
“Texas dairies increased their output capacity by around 25,000 cows this year, and the processing expansion will enable farmers contribute to that growth,” she said. “One of the limiting elements impeding manufacturing is processing capacity.”
Liquid milk consumption is down, while dairy products for lactose intolerant customers are increasing, according to Spencer. Summer ice cream demand often leads in seasonally increased milk costs.
Whey, which is used in goods such as muscle recovery powders and infant formula, is an increasing part of dairy demand, according to Spencer. It is a byproduct of cheese manufacturing that was deemed trash until a purpose for its 99% amino acid protein was discovered.
Spencer said that continually growing dairy alternatives for customers is driving total production growth in the United States.
“Texas producers are highly progressive, so they are responding to the problems in order to preserve output and profitability,” she added. “The demand is there, and I believe there is room for Texas dairy production to go further.”
The following summaries were produced by AgriLife Extension district reporters:
CENTRAL
The majority of the district got 0.5 to 1.5 inches of rain. While recent rains restored soil moisture, pastures remained in poor condition owing to the harsh frost and drought. Higher temperatures are expected to boost pasture conditions. Cattle were being fed a lot of extra food. Hay supplies were critically low. Conditions for wheat and oats were improving. The future corn plants could benefit from the precipitation.
THE ROLLING PLAINS
More rain fell in several regions, with some counties reporting up to 1.5 inches. Wheat has continued to improve as a result of the recent rain, but more precipitation is required to maintain the gains. Rangeland and pasture conditions were improving, and warmer weather was expected. Wheat conditions improved considerably in several regions, particularly in fields that had been treated before to the rains. Winter supplemental feeding for livestock continued, but some producers grazed wheat. Pasture grasses were also greening up as a result of the increased rain. There was a scarcity of hay. Cattle physical conditions were good, but large feed rations were required to keep them in good shape. Cows nursing calves were losing physical condition.
COASTAL TURN
The majority of the district experienced rain, ranging from drizzle to heavy showers. The weather remained mild. Soils remained wet due to enough subsoil moisture. Grain growers readied planting equipment, while others completed fertiliser. Several fields were flooded, so farmers delayed planting maize until they dried out. Winter pastures were thriving. Several oat fields were almost ready for grazing. Pastures remained essentially dormant, and livestock farmers supplemented their feed with hay and protein. While hay was still in scarce supply, further supplementary feeding was still required. Cattle were in excellent condition, and prices were consistent.
EAST
Soggy conditions prevailed in the fields and pastures. Numerous counties reported that pastures and fields were too flooded to operate on, and equipment became stuck. The subsoil and topsoil conditions were satisfactory. Stock ponds and streams were overflowing. The pasture and rangeland conditions were satisfactory. Supplementation was being administered to the livestock, which were in fair to excellent condition. Because of low hay supplies, several farmers began to give more cubes. Flooded bottoms have driven wild pigs into more visible areas, increasing their activities.
THE SOUTH PLAINS
Cotton totals were quite low by the end. High winter moisture was observed, including snow, sleet, and rain. While livestock were in fair health, the weather was hampering wheat output.
PANHANDLE
Snow flakes fell across the Panhandle, but no significant accumulation was observed. The area remained very dry. Soil moisture levels were extremely low to very low. Winter wheat was suffering from a lack of moisture. Pasture and rangeland conditions ranged from bad to extremely poor. Livestock supplementation was maintained.
NORTH
Soil moisture levels were insufficient. Although most locations were dry, growers in other areas were coping with exceptionally wet circumstances. A brief halt happened. Other regions were still trying to recover from the deep cold that occurred earlier this winter. Rainfall flooded the majority of the ponds. Conditions for wheat and oats were improving. In certain locations, hay was still scarce. The pollen count of cedar trees was high. The livestock situation was favourable. There were no reports of insect or disease outbreaks.
FAR OUT WEST
The days were chilly and damp at first, then warm and dry. Temperatures throughout the day varied from the mid-50s to the lower 60s, with lows in the mid-20s. Growers started discing or tossing up beds in preparation for corn or cotton planting, which increased fieldwork across the area. Orchard floor cleaning and trimming for pecan activities proceeded. Other farmers were targeting orchards and residual alfalfa fields where irrigation from the water district was still accessible. In the next weeks, irrigation was projected to increase. The pastures were still barren, with just a few weeds sprouting. The livestock were in poor to good condition and were given extra hay and feed.
CENTRAL WEST
After rain showers and an ice storm, topsoil moisture was enough. Prior to the most recent rains, some field cultivation took place. Several small grain fields were top-dressed with fertiliser prior to the rain and should fare well. Warmer, brighter days were predicted. Pastures were still lacking in grazing, so farmers were providing hay and vitamins to animals.
SOUTHEAST
The weather was nicer. The soil moisture levels were sufficient to excess. After heavy rains, water was still standing in several areas. The ground was muddy. Warmer weather and better pastures resulted in a higher calf market. Wheat sowing was delayed due to rain and muddy areas. The grades for rangeland and pasture ranged from extremely low to outstanding. Planting conditions for wheat, ryegrass, and other forages were excellent. Greening of pastures, including broadleaf weeds, was observed. Corn planting should begin shortly, although damp fields may cause a delay. Rains filled stock ponds.
SOUTHWEST
Moisture levels rose, however other places remained dry. Ice damaged trees, and orchard managers pruned trees and removed debris. Corn planting was set to start shortly. Wheat and oats seemed to be doing well under irrigation, with very few winter weeds appearing. Additional feeding for cattle was maintained but reduced.
SOUTH
Most regions had extremely short to short soil moisture levels, with some southern areas reporting acceptable soil moisture. Temperatures were colder, with windy winds and sporadic rain recorded. The daytime high temperature hovered around 80 degrees. Farmers were getting ready to sow and checking soil moisture levels. Corn planting should begin when the soil moisture is sufficient for germination. Corn, sunflowers, and sorghum were sown in the district’s southern sections with appropriate moisture, although a rain would benefit those crops. Irrigation was used on certain planted areas. Cool-season crops were harvested by vegetable farmers. Onion yields seemed to be satisfactory. Citrus and sugarcane were also in season. Pasture and rangeland conditions were poor, and grazing was restricted in most locations, however some good grazing was noted in the district’s south. Hay and feed costs continued to rise as farmers supplemented animal meals. Producers were culling bulls and cows, and market prices remained strong to stable. The livestock were in good condition. Mesquite trees were leafing out, and black brush was flowering. Wheat and oat fields were in fair shape, while other areas were experiencing dry conditions and frigid temperatures.
