The U.S. dairy industry is facing a possible shortage of its most important resource – milk cows. The number of replacement heifers available to enter the dairy herd as milk-producing cows has already fallen to a 20-year low. Based on new CoBank research, replacements could fall even further over the next two years before a recovery begins in 2027. These declining heifer inventories could limit growth in the milk supply, a looming concern for dairy processors with expansion plans underway. The U.S. is currently experiencing a historic $10 billion investment in new dairy processing facilities expected to come online through 2027. According to the new report from CoBank’s Knowledge Exchange, the national dairy heifer shortage could persist and grow deeper in the next two years. Tight cattle supplies and record-high prices for beef calves prompted many dairy farmers to produce more calves destined for feedlots and fewer for milk barns.
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