With grain prices continuing to remain low, dairy provides a bit of optimism for equipment sales for dealers and manufacturers alike.

Speaking at World Dairy Expo on Oct. 4, in Madison, Wis., Secretary of Agriculture Tom Vilsack said USDA is expecting 2024 to be the third-highest export year for dairy products. In fact, he said, 2021 to 2024 may be a record for exports in terms of a 4-year timeframe. “The future of exports for dairy is bright,” he said

Year-over-year U.S. dairy exports modestly improved in August, with gains in several major product categories, according to the latest data from the U.S. Dairy Export Council.

During a panel discussion at World Dairy Expo, Krysta Harden, president and CEO of the U.S. Dairy Export Council, said dairy exports have become a critical part of dairy demand. In fact, 17% of U.S. milk production is exported.

Cobank reports that at $76 billion in annual U.S. sales, “the dairy aisle stands as the largest category in retail.” Cobank reports that over the last 3 years, dairy retail sales have grown at a rate of 15.4% or $10.1 billion. And, it added, that growth hasn’t been driven by the recent price inflation.

With dairy pricing better than cash grains, there’s opportunity for equipment sales for products like spreaders, balers, forage harvesters and some tractors. Greg Petras, president of Kuhn North America, says the dairy sector is giving them some optimism.

“The dairy industry has been a pleasant surprise this year. We thought that margins for our dairy men were going to be a lot lower than they are. And we're seeing some nice pickup in potential margins t he second half of this year, because we're seeing a better prices. It's all about supply and demand of course.”

“And I think, dairy's had done a good job, balancing the supply and demand aspect of the industry. And because of that it's rebounding. And, so we're very, as we round out this year and go into 2025, we're a little bit optimistic, about demand coming out of that industry for Kuhn products.”

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