Big dairies - those taking advantage of economies of scale. Dairies cutting costs through rotational grazing probably fit either in the niche-excellent category or the lifestyle group. The fourth group, however, appears to be the one Jones thinks will have the easiest time surviving. The prediction offers an interesting contrast to the current 116,430 dairy farms and 9.12 million head. The number of cows stays about the same while the number of farms drops dramatically.
Statistics show, however, that the industry's clearly already moving that direction.
More people in the business tend to be those who emphasize technical and business knowledge. They may contract for services such as manure removal and cow leasing and they forward-contract their milk. Jones said the average dairy operator will double his herd size four times during the course of his career, a pattern farmers are already following. Each generation needs to be doing that. Jay Penick, chief executive officer of Northwest Farm Credit Services in Spokane, Wash., agrees that the industry seems more clearly divided in terms of size.