More and more people are putting beef on their plates at the dinner table, which is driving up global demand for premium beef as a vital source of animal protein.

We must change our thinking about raising replacements and selling cull cows. In a dairy animal’s lifetime, she can yield both milk and beef. The cost of replacement is not the cost of raising that animal, but it is the difference between its raising cost and the cull cow price multiplied by the probability of it being sold for beef.

2023 was a tough and “below-average” year for many dairy producers in the Northeast. While they remain cautious heading into 2024, new processing capacity in New York and other opportunities across the region bring excitement and optimism to the dairy community.

In addition to the high input costs and thin margins plaguing dairy producers across the nation, drought, other water issues, low milk prices and labor contribute to the caution expressed by dairy producers and industry leaders in the central and Great Plains region.

The words “financially stressed,” “weary” and “frustrated” paint a less than cheery picture of the current state of the dairy economy heading into 2024 for producers in Arizona, California, Idaho, Oregon and Washington.

Entering an election year with high inflation and input costs, tight dairy farm margins and a farm bill that has been punted into 2024 has left many in the Midwest feeling a mix of uncertainty and cautious optimism about what is to come this year.