Milne Feeds Sales Manager, Paul Nenke, recently travelled to the United States to attend the American Sheep Summit and visit a range of livestock producers, including sheep, beef and dairy farms. The visit offered valuable insight into how American producers manage their farming systems and explore tools and strategies that could be shared with Milne Feeds customers.
One of the key observations was the state of the US dairy industry, particularly in Texas, where significant change is underway. With the average age of dairy producers now in their late sixties and fewer young people stepping in to take over, many family farms are being sold. These properties are often acquired by large corporate dairies, or investors repurposing farmland for residential developments. This shift is putting pressure on rural communities and reducing long-term agricultural capacity.
The trend toward consolidation continues, with smaller dairies either absorbed or replaced by much larger operations. Succession planning remains a concern and land use is shifting rapidly as urban sprawl expands into traditional farming areas.
A major pressure point is the current cattle shortage. Replacement cows are now selling for around $4,500 US dollars, or roughly $7,000 Australian dollars, with prices rising steadily. This is contributing to a decline in available replacement stock.
During his visit, Paul toured what is believed to be the largest dairy in the United States. The scale of the operation was striking. Approximately 200,000 cows are milked each day across three separate sites, supported by a replacement herd of around 400,000 cows and calves. Despite the scale, average milk yield is around 25 litres per cow per day. Cattle are housed indoors in large, enclosed sheds fitted with high-capacity ventilation systems. Milk and cheese are processed on site and feed logistics are constant, with trucks arriving every five minutes. Silage pits are estimated to hold 200,000 tonnes, and rise as high as a four-storey building. Grain storage is of a similar scale. At harvest time, up to 20 forage cutters are in use, supported by an extensive fleet of trucks. The dairy purchases around two million tonnes of wheat annually from local growers, which significantly impacts feed pricing for surrounding dairies and feedlots.
Environmental challenges are also coming into focus. While the dairy holds a licence to capture methane emissions, the effectiveness of this system is unclear. Barns are ventilated every four minutes and, currently, there is no independent research being conducted by local universities. Many farmers believe the debate around emissions is more political than evidence-based. However, regulatory pressure is increasing, and adjustments to environmental management may be required soon.
Disease risk is another major concern. The threat of screwworm, which is now believed to be just 500 kilometres south of the Texas border, has producers on alert. This pest lays eggs in open wounds or orifices with larvae feeding on live tissue. If introduced, it could cause severe losses across livestock industries.
Genetics and calf management are central to the success of these systems. All calves are retained for either feedlot use or future breeding. One standout example includes a cow that has produced nine calves, with images of the animal displayed proudly in the dairy’s boardroom. In the surrounding region, two large-scale calf centres operate independently. Each houses between 50,000 and 55,000 calves and operates under strict biosecurity, with limited access.
Feed and supply chain challenges are ongoing. Competition for pellet feed among calf centres is high. Current feed quality is considered poor, with excessive fines contributing to health issues in young stock. Day-old calves are selling between $900 and $1,200 US dollars, or around $1,500 Australian dollars.
Across Texas, herd numbers are also being questioned. While official records suggest there are 11 million cows, local estimates put the real figure closer to 9 million. With high demand and limited supply, the dairy population is declining and shows no clear signs of recovery. The large dairy visited is seen as the exception rather than the standard.
The broader picture suggests that the US dairy sector is at a turning point. Large operations continue to function, but the challenges are mounting. Environmental pressure, a lack of generational succession, feed quality issues and disease threats are all placing strain on the system. For Milne Feeds, the trip reinforced the importance of delivering easy feeding solutions that support productivity, animal health and long-term sustainability in livestock production.
To learn more about Paul’s visit to the United States or to discuss Milne Feeds’ products, contact Paul Nenke on 0407 720 040.
