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Authors: Dr. Douphrate is an associate professor and Dr. Rodriguez is a research coordinator at the University of Texas Health Science Center at Houston.
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Importance of the New Mexico Dairy Industry
The State of the Dairy Industry in New Mexico (as compared to 2000): 15 years of dairying in New Mexico:
The dairy industry in New Mexico barely survived the two worst years in dairy history (2009 and 2012), and only because these two years were followed by a good year in 2011 and in 2014. Still the net rate of return over 15 years of production for the average NM dairy farmer was -$0.10 per cwt. of milk produced. Continued consolidation are the two keywords describing the dynamics playing out in the industry. Over the last decennium dairy farm numbers across the US have continued to decline (-32%) as well as in New Mexico (-24%). Dairy cow numbers are not nearly as sensitive to these changes, indicating consolidation across the sector. Milk production continues to improve (+18%), a great story of efficiency and sustainability by farmers producing more milk with less inputs! New Mexico remains the number one State in production per cow because dairy cows truly enjoy the dry Southwestern climate! Cows typically enjoy a cool afternoon breeze on hot summer days resting comfortably under the shades, while dissipating the heat accumulated during the cool nights. In turn, the winters are relatively mild compared to other key dairy production areas of the US. New Mexico is the first State where production per cow has broken the 25,000 lbs record due to great cow comfort and care, combined with excellent nutrition and forage quality.
|Direct Economic Impact to the New Mexico Economy (2013)||$1.51 billion||$40.5 billion|
|Portion of Gross Receipts of NM or US Economy||3.6%||0.13%|
|Dairy Receipts as a % of NM Total Farm Receipts (2013)||39.7%|
|Beef Receipts as a % of NM Total Farm Receipts (2013)||40.9%|
|Total Employment Generation in NM (2013)||12,524 jobs||282,831 jobs|
|Labor income generated (2013)||$599 million||9.9 billion|
|Southwest Contribution to US (TX, NM & AZ)||12.5%||3rd largest dairy shed in the country|
|Cheese Production||6.6% of US||5th in the US|
|Number of Cows per Dairy (2014)||2,485||1st in the US|
|Contribution to National Milk Production||4.0%||9th in the US|
|Number of Milking Cows ( Jul 2015)||323,000 head||down 12% from Aug 2006|
|Milk Produced (2014)||8.1 billion lbs||up 18% from 2006|
|Milk productivity per cow||25,093 lbs||1st in the US|
|Number of Dairy Operations in NM (Jul 2015)||145 Dairy Farms||Down 24% from 2003|
|Top 3 counties in NM (Curry, Chaves & Roosevelt)||Produce 77% of NM Milk|
Updated September 2015