Material From Original Gov't Discussion Paper
[ Intro to Dairy production outlook from original discussion papersource#1, "Outlook for Manitoba's Livestock Industry" p.2 ]The number of milking cows may continue to shrink but individual productivity will continue to climb. The average farm dairy herd is increasing in size to achieve economies of scale. Dairy cows per farm have increased to an average of about 56 to 58 animals. However, the range in herd size varies from a low of 20 to a high of about 450 cows. The fastest growing sizes of herd are those in the range of 80 to 200 cows.
Since 1985, the number of dairy farms has declined from about 1,250 to 660. Production per cow continues to steadily rise with improvements in cow comfort, nutrition, herd health and newer, more cow-friendly facilities.
The rising quota price has prompted a significant number of producers to move out of the industry rather than reinvesting and expanding their individual operations. Other producers who have decided to make a long-term investment in their operations are purchasing quota sold by those leaving the industry.
Increased interest in forming cooperative dairies owned by a number of producers will likely occur. This may help to keep smaller quota holders in the industry because of improved margins on their investment, despite possible future declines in milk prices or quota values.
End Quote
Material From "Common Ground" Government Report
Other Material and References