A Review of Wisconsin’s Dairy Industry 2015 Dairy Data 2015 Wisconsin Dairy Statistics The average Wisconsin dairy cow generates more than $34,000 a year in economic activity. Source: WASS; UW Dept. of Agriculture and Applied Economics Wisconsin’s Dairy Industry • Number of licensed Wisconsin dairy farms 10,290 dairy farms • Number of Wisconsin dairy cows 1,271,000 dairy cows • Average milk production per cow per year in Wisconsin • Total Wisconsin milk production 21,869 lbs. / 2,543 gal. 27,795,000,000 lbs. / 3,232,000,000 gal. • Wisconsin milk production (percentage of the U.S. total) • Average number of cows per farm in Wisconsin • Total Wisconsin cheese production • Wisconsin cheese production (percentage of the U.S. total) 2,891,422,000 lbs. 25.4% • Total Wisconsin specialty cheese production (2013) 640,188,000 lbs. • Total Wisconsin Cheddar cheese production 564,653,000 lbs. • Total Wisconsin other American cheese production 275,986,000 lbs. • Total Wisconsin Mozzarella cheese production 980,933,000 lbs. • Total Wisconsin other Italian cheese production 469,419,000 lbs. • Total Wisconsin Dry Whey (for human consumption) production 280,339,000 lbs. • Number of cheese plants in Wisconsin 138 plants • Number of butter plants in Wisconsin 13 plants • Number of yogurt plants in Wisconsin 15 plants • Total Wisconsin plants manufacturing one or more dairy products (2012) 2 13.5% 124 dairy cows All statistics are from 2014 data unless noted otherwise. Source: Wisconsin Agricultural Statistics Service (WASS); USDA National Agricultural Statistics Service (NASS); Wisconsin Department of Agriculture, Trade and Consumer Protection (WDATCP) 203 plants Wisconsin’s Dairy Heritage • 1830s Wisconsin farm wives begin making cheese. • 1858 John J. Smith obtains state’s first cheese vat; becomes first to sell beyond state’s borders. • 1877 Brick Cheese is first made by Wisconsin cheesemaker John Jossi. • 1885 Colby Cheese is invented in Colby, Wisconsin, by Joseph Steinwand. • 1890 UW Professor Stephen Babcock develops method for placing value on milk quality. • 1890 First dairy school in America established at UW-Madison. • 1910 Wisconsin becomes nation’s leader in cheese production. • 1915 • 1921 Wisconsin becomes leading dairy state, producing more milk than any other. Wisconsin becomes the first state to establish cheese grading standards. • 1940 Wisconsin adds “America’s Dairyland” to auto license plates. • 1972 Wisconsin Cheese production exceeds one billion pounds. • 1986 The Center for Dairy Research at UW-Madison is established. • 1992 Wisconsin Cheese production exceeds two billion pounds. • 1994 The Wisconsin Master Cheesemaker® program, unique in the Western Hemisphere, established. • 1994 Wisconsin Specialty Cheese Institute is formed to promote specialty cheese. • 2010 • 2013 Wisconsin becomes 4th largest cheese-producing region in the world. Specialty cheese production tops 640 million pounds, accounting for 22% of Wisconsin’s total cheese production and 46% of total U.S. specialty cheese production. • 2015 Wisconsin cheesemakers capture 59% of all awards presented at the United States Championship Cheese Contest, including 38 awards won by Wisconsin Master Cheesemakers. Source: Wisconsin Department of Commerce; WASS; American Cheese Society; Wisconsin Cheese Makers Association (WCMA) As much as 90% of Wisconsin’s milk is made into cheese and 90% of that famous Wisconsin Cheese is sold outside of the state’s borders. Source: WMMB, Inc. 3 U.S. Cheese Production Wisconsin has led the United States in cheesemaking since 1910. 2014* U.S. Cheese1 Production by States 2014* U.S. Cheese1 Production by Variety Source: WASS Wisconsin 25.4% CA 21.1% All Other States 20.0% SD 2.4% PA 3.7% MN 5.8% NM 6.8% ID NY 6.9% 7.9% Other American 11.0% Other Italian 9.0% 2014 TOTAL PRODUCTION 11,404,584,000 lbs. 4 Mozzarella 34.5% Cheddar 28.5% Hispanic 2.2% Swiss All Other 2.6% 5.0% Cream Cheese 7.2% 1 *Preliminary; does not add due to rounding. Excludes Cottage Cheese Source: USDA/NASS, “Dairy Products” U.S. Dairy Production Wisconsin’s Rank in the U.S. Dairy Industry, 20131 PRODUCT WISCONSIN PRODUCTION % OF U.S. RANK AMONG STATES American Varieties 837,525,000 lbs. 19.0% 1 Cheddar 567,814,000 lbs. 17.8% 1 1,422,200,000 lbs. 30.0% 2 Mozzarella 960,481,000 lbs. 26.0% 2 Provolone 188,661,000 lbs. 52.4% 1 Parmesan 121,729,000 lbs. 38.1% 1 Romano 25,658,000 lbs. 57.0% 1 52,982,000 lbs. 32.5% 1 3,049,000 lbs. 31.8% N/A 544,000 lbs. 100.0% 1 70,906,000 lbs. 29.4% 2 2,855,681,000 lbs. 25.7% 1 • Processed Cheese 622,401,000 lbs. 51.8% 1 • Dry Whey, Human Food 302,843,000 lbs. 32.8% 1 27,572,000,000 lbs. 13.7% 2 1,271,000 cows 13.8% 2 • Cheese: Italian Varieties Muenster Brick Limburger Hispanic • Total Cheese 2 • Milk • Milk Cows 1 Preliminary Excludes Cottage Cheese 2 Source: WASS; USDA/NASS Wisconsin cheesemakers set a new record for specialty cheese production in 2013, producing 640 million pounds. Specialty cheese production has more than doubled in Wisconsin in the past ten years. Source: WASS 5 Per Capita Cheese Wisconsin cheesemakers produce more than 600 varieties, types and styles of cheese, from cheddar to big wheel swiss. Source: WMMB U.S. Cheese Consumption by Variety, 2013* 40 40 POUNDS PER CAPITA 33.7 lbs. 35 U.S. Cheese Consumption, 1970-2013* 30 25 25 20 20 15 13.4 lbs. 14.0 lbs. 34 lbs. 35 30 38 lbs. POUNDS PER CAPITA 33 lbs. 30 lbs. 25 lbs. 18 lbs. 15 11 lbs. 10 10 6.3 lbs. 5 5 0 0 American 6 Italian All Other Natural Cheese *Preliminary estimate Source: USDA/ERS, “Dairy Data” 1970 Total 1980 1990 2000 *Preliminary estimate **Projected Numbers rounded to the nearest full pound. Source: USDA/ERS, “Dairy Data”; FAPRI, “U.S. Baseline Briefing Book”, March 2014 2010 2013* 2023** World Cheese Production Wisconsin’s Rank Among the Top Cheese-Producing Countries, 2013 Wisconsin has 1,173 licensed cheesemakers and is the only state that requires a licensed cheesemaker to supervise production of cheese intended for sale. 10,000 PRODUCTION (million lbs.) 9,000 8,245 8,000 7,000 6,000 5,000 Source: WDATCP, January 2015 4,811 4,268 4,000 2,856 3,000 2,552 1,749 2,000 1,614 1,451 1,409 1,229 1,000 0 United States (excluding Germany Wisconsin) France Wisconsin Italy Netherlands Poland Russian Fed. Source: USDA/NASS, “Dairy Products Annual Summary”; EuroStat; UN FAOStat Online Database Egypt Argentina 7 U.S. Dairy Product Consumption Cheesemaking is widespread in Wisconsin, with at least one cheese factory in 45 out of Wisconsin’s 72 counties. Green and Lafayette lead the state with 11 factories each. Source: WDATCP 8 U.S. Dairy Product Consumption U.S. Per Capita Sales of Dairy Products POUNDS OF PRODUCT REDUCED WHOLE & LOWFAT NONFAT MILK MILK MILK YEAR FLAVORED CHEESE MILK ICE CREAM CREAM PRODUCTS BUTTER ALL DAIRY COTTAGE CHEESE YOGURT PRODUCTS1 • 2003r 61.5 81.2 26.8 14.4 30.3 21.6 11.4 4.5 2.7 8.6 597 • 2004r 59.4 80.6 26.6 14.7 31.0 20.1 12.1 4.5 2.7 9.2 596 • 2005 56.7 80.8 27.0 14.6 31.4 20.1 12.4 4.5 2.7 10.3 605 r • 2006 55.1 81.3 27.2 14.9 32.2 20.5 12.5 4.7 2.6 11.1 613 • 2007r 52.2 82.0 27.2 14.5 32.8 20.0 12.8 4.7 2.6 11.5 614 • 2008 50.3 85.2 27.1 14.2 32.2 19.5 12.3 5.0 2.3 11.7 608 r • 2009 48.9 86.0 26.8 14.2 32.3 19.3 12.2 5.0 2.4 12.5 609 • 2010r 46.3 86.0 26.3 15.2 32.8 19.6 12.4 4.9 2.3 13.5 604 • 2011 45.0 83.2 25.2 14.7 33.1 18.8 12.2 5.4 2.3 13.7 604 • 2012 44.6 82.0 25.2 14.8 33.3 19.4 11.1 5.5 2.3 14.1 614 • 2013 44.1 81.6 23.0 13.9 33.5 18.7 10.8 5.5 2.1 14.9 607 r r r r P rRevised Wisconsin’s dairy industry contributes $43.4 billion a year to the state’s economy. Source: UW Dept. of Agriculture and Applied Economics Source: USDA/ERS, “Dairy Data” PPreliminary 1Pounds of milk equivalent, milkfat basis 9 Milk Contributions/Conversions Milk is the wise beverage choice. It beats soft drinks on every major nutrient content measurement. Milk’s Contribution to U.S. Recommended Daily Allowances (RDAs) FAT FREE MILK ONE 8 OZ. SERVING (80 CALORIES) NUTRIENT % OF DAILY VALUE* • Calcium 30% 0% • Vitamin D 25% 0% • Protein 16% 0% • Potassium 11% 0% • Vitamin A 10% 0% • Vitamin B12 13% 0% • Riboflavin 24% 0% • Niacin 10% 0% • Phosphorus 20% 3% *Based on a 2,000 calorie diet. Source: National Dairy Council / MilkPEP 10 SOFT DRINK ONE 12 OZ. SERVING (100 CALORIES) Milk Conversion Factors • One quart of milk weighs 2.15 lbs. • One gallon of milk weighs 8.6 lbs. • 46.5 quarts of milk equals 100 lbs. TO MAKE ONE POUND OF: REQUIRES: Butter 21.8 lbs. whole milk Whole Milk Cheese Ice Cream (1 gal.) Cottage Cheese Plain Yogurt 9.8 lbs. whole milk 12.0 lbs. whole milk 7.3 lbs. skim milk 1 lb. whole milk The quantity of milk used to produce one pound of each product depends primarily upon milkfat content of the milk. Therefore, this table is only an approximation. Source: USDA Contest Results 2014 American Cheese Society Contest Wisconsin 36.0% 71 Awards of 197 Total 2015 United States Championship Cheese Contest All Other States 23.8% Wisconsin 59.3% 160 Awards of 270 Total CA 11.7% OR 5.1% Canada 8.1% Percent of 2014 Winners1 1 Includes only cow’s milk or mixed-milk cheese winners Source: American Cheese Society Source: WCMA CA 5.9% ID 3.0% OR 2.2% OH 2.2% VT 10.7% WA 4.6% All Other States 13.3% NY 7.4% VT 6.7% Wisconsin cheesemakers swept 31 out of 89 classes at the 2015 United States Championship Cheese Contest, taking the top three prizes in each class. Percent of 2015 Winners1 1 Winners shown for all classes Source: Wisconsin Cheese Makers Association (WCMA) 11 Wisconsin Dairy Utilization Wisconsin produced 13% of all milk and 25% of all cheese in the United States in 2014. Source: USDA/NASS Total Dairy Utilization on the Rise Steady growth in cheese consumption has led to an increase of 19.2% in total dairy utilization — despite declining milk consumption. Cheese Leads U.S. Growth in Dairy Utilization 35% 30% 25% 20% 15% 10% 5% 0% -5% Cheese: +29.2% Outdo Ordinary® Milk & Cream: -3.1% TEN YEAR TREND 8418 Excelsior Drive Madison, WI 53717 www.EatWisconsinCheese.com SOURCE: USDA/NASS, Dairy Products Annual Summary 12 © 2014 Wisconsin Milk Marketing Board, Inc. 9750