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Arkansas' Dairy Industry Not As Big As Other States But Still Important

Last Updated: June 05, 2009

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Arkansas dairy farmers earn about $50 million a year from the sale of milk and dairy animals.

Released June 5, 2009

LITTLE ROCK - Governor Mike Beebe will proclaim "June is Dairy Month" for Arkansas on June 9. June is when the industry celebrates the nutritional value of dairy products and the economic impact that the dairy industry has on local communities.

Arkansas' dairy industry may not be as big as the dairy industries in Wisconsin or California, but it's still pretty important to the state," said Jodie Pennington, dairy specialist for the University of Arkansas Cooperative Extension Service.

He said the state's dairy farmers earn about $50 million a year from the sale of milk and dairy animals.

"The retail value of milk and other dairy products, such as cheese, consumed in Arkansas exceeds $500 million a year," notes Pennington. "The state's dairy farmers put more than $30 million into the economy buying feed and other supplies, which is significant to many local towns. And we only produce about 15 percent of the total dairy products consumed in the state.

"The overall economic impact of dairying on Arkansas is more than $600 million a year," Pennington said. "An average dairy farm contributes significantly to smaller communities. Money spent by dairy farmers for business-related purchases is turned over several times in the area. Dairy farming is one of the main, full-time agricultural jobs in the Ozark region."

Pennington said the state's 140 dairy farmers produced about 100 million quarts of milk last year, but Arkansas processors still have to import three times that amount of milk from other regions."

Every year, Arkansas dairy farmers become more efficient, producing more milk per cow. There are now 17,000 cows producing more than 14,000 pounds of milk per year, he said. The top herd averages more than 24,500 pounds of milk per cow.

Pennington said dairy farmers have benefited from new technology.

"Our best producers use computer to formulate their feed rations, artificial insemination for breeding, and records from the National Dairy Herd Improvement Program to help them produce milk more efficiently.

As in neighboring states, Arkansas cow herds are getting larger, but the number of herds is decreasing. During the past 10 years, cows per herd have increased more than 50 percent. Some herds in the state have more than 500 cows. During the same 10-year period, the number of cow herds in the state has dropped more than 50 percent.

Pennington says the quality and healthiness of Arkansas milk ranks among the best in the nation. It's among the safest foods offered.

"Dairy products are basic to any diet. They can be used to lose weight, gain weight or maintain weight," he says. "The new diet schemes with low carbohydrates fit well with dairy products. Dairy products are part of the food pyramid and are considered essential for the growth of young children."

Among the products made at Arkansas processing plants are whole milk, low-fat and skim milk, ice cream, cheese, evaporated milk and condensed milk.

Pennington says, "Consumers are getting a healthy product at a relatively stable price." Forty years ago, factory laborers had to work seven minutes to buy a quart of milk. Last year, they had to work less than four minutes for a quart of milk. This year, it will probably take three minutes of work."

The recent decrease in milk prices at the store has been a plus for milk sales and milk is an extremely good buy for its nutritional value.

Dairy farmers now are receiving low prices for their milk on the farm. Recent state legislation gives dairy farmers an opportunity to gain financial stability, Pennington noted. He hoped these measures would decrease the number of dairy farms exiting the industry and make milk less expensive for consumers.

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http://www.uaex.edu/news/june2009/0605dairy_month.htm

Contact: Lamar James, (501) 671-2187, ljames@uaex.edu

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