Expanding on Progressive Dairy’s annual “State of Dairy” outlook for the northeast U.S., Zach Myers, risk education manager, and Jayne Sebright, executive director, provide insights on current conditions and future challenges and opportunities as 2023 gets underway.

One of the key factors affecting the state of dairy in 2023 is domestic demand and the role inflation has on retail sales. The industry will need to focus on innovative products that balance premium experiences, health claims, taste and convenience to meet consumer demand and capture future growth.

Intermingled with large population centers, dairy producers, processors and marketers in the Northeast and New England must stay in tune with local demands and global conditions. That results in a medley of opportunities and concerns.

Geographically, the Central Federal Milk Marketing Order (FMMO) stretches across Oklahoma and Kansas, large portions of Colorado, Illinois, Iowa, Missouri and Nebraska, and into counties in Minnesota, South Dakota and Wisconsin.

Milk producers and handlers supplying the Appalachian Federal Milk Marketing Order (FMMO) cover five states: Kentucky, North Carolina, South Carolina, Tennessee and Virginia. Like their neighbors to the south, they share similar concerns and diverse outlooks.

Running through the heart of the north-central U.S. and bordering three of the nation’s 24 major dairy states, Interstate 29 (I-29) is a strong vein from which to measure the pulse of the industry.

Beyond sharing Great Lakes’ shorelines, dairy producers in Indiana, Michigan and Ohio have a lot in common. Most were aided by the wave of higher milk prices in 2022, putting them in their best financial positions in years.

Milk produced and marketed in the 11 states in the southeastern U.S. is pooled on the Appalachian, Southeast and Florida Federal Milk Marketing Orders (FMMOs).