CHOICES
A publication of AAEA
The dairy industry generates about 3.4% of US GDP annually, equivalent to $794 billion in 2024. However, it is facing multiple challenges including labor shortages, disease outbreaks, concerns on its environmental footprint, variable milk-feed margins and farm closures. Our theme explores multiple resilient strategies implemented by US dairies to overcome these obstacles, such as automation, biosecurity measures to combat the avian flu, sustainable practices, genomic testing, and beef-on-dairy breeding. In addition, the theme also discusses the updates to milk prices, which took effect in June 2025.
In the first paper, Peña-Lévano et al. examine the increasing role of automation in dairy farming, particularly in California and Wisconsin, where labor shortages and rising wages pressure farmers toward new technologies. Automated milking systems (AMS) are viewed as a possible solution to lessen reliance on labor, but high upfront costs and necessary infrastructure upgrades impede widespread adoption. Variations between the states underscore labor challenges—California’s larger farms rely more on immigrant labor, whereas Wisconsin’s dairy operations struggle to find temporary workers. In addition to AMS, farmers are progressively adopting ancillary technologies such as automatic feeders and manure management systems to enhance efficiency and address labor shortages.
The second paper, presented by Garcia-Covarrubias et al., discusses the 2024–2025 avian influenza A(H5N1) outbreak in US dairy cattle. The first known case of transmission was initially detected in Texas, spreading rapidly to 16 states, raising significant economic and health concerns. Farmers reported respiratory issues and decreased milk production, leading to public alarm. Although pasteurization neutralizes the virus, the outbreak prompted stricter biosecurity measures and government support to mitigate financial impacts.
Burney et al. investigate sustainable practices among Wisconsin dairy farmers, emphasizing the complex interplay between economic, demographic, and sociological factors. Farm profitability emerges as a crucial factor for sustainability, with an increasing number of dairy operations investing in environmentally friendly practices. Key findings show that smaller farms favor grazing and organic production, while larger farms are more inclined toward practices like no-till and nutrient management.
Hutchins and Funes Leal examine the impact of genomic testing on milk yield in the US dairy industry. Despite advances since adopting genomically tested bulls in 2010, average national yields have not reflected the predicted improvements. Factors such as herd size, farm management practices, and environmental conditions influence the gap between genetic potential and actual production. Further research is needed to bridge this gap and maximize the benefits of genetic advancements.
The fifth article, by Pinto et al., explores the growing use of beef-on-dairy breeding in US dairy farms to generate an additional source of income. In this study, the researchers present an economic model that evaluatesthe financial viability of crossbreeding in typical dairy operations. Key findings highlight the importance of the herd lactation cycle, use of sexed semen and the period between lactation on the profitability of crossbreeding.
Finally, Nicholson, Wolf, and Stephenson explore the USDA’s recommended decision to update milk pricing regulations under the Federal Milk Marketing Orders (FMMOs), the most significant changes in over 2 decades. These updates took effect in June 2025 and include adjustments to milk composition factors to reflect modern dairy production. These updates aim to better align pricing with industry realities and improve market stability but will have mixed regional impacts.
