Texas has been a national leader in milk production growth, but even there the mood is “solemn,” according to Darren Turley, executive director of the Texas Association of Dairymen.
Lower milk prices and surplus stocks of powder continue to weigh on commodity prices, pressuring margins.
“Most producers are feeding cheap forage and, with commodity prices low, feed costs are in good shape for most Texas producers,” Turley said. “Unusual but beneficial” mild weather contributed to milk production growth in 2017. That may not be repeated in 2018, which is starting out dry. Forage supplies are very strong going into 2018 but, with the Panhandle area under drought conditions, spring planting is questionable because of a lack of moisture.
Texas milk production increased about 9 percent in 2017, to more than 12 billion pounds of milk, according to a report from Ellen Jordan, Texas A&M AgriLife Extension Service state dairy specialist.
“The Panhandle/eastern New Mexico region is already the third-largest milk-producing area in the country with around 15 billion pounds of milk produced in 2017,” she said. “New technology and best management practices will only enhance the logistical and environmental side of production, which enhances the animal welfare aspect and quality of life for our producers as they work to provide quality milk to consumers.”
New state and regional dairy plants and plant expansions have Texas in better processing capacity shape compared with much of the rest of the country. The plant growth has driven producers to take a longer-range view, with more optimism ahead.
“Texas has optimism in its dairy industry even though 2018 looks to be very rough,” Turley said. 
Read also:
Northwest turning to short-term
Two forms of concentration in the Southeast
Texas and New Mexico optimistic
ILLUSTRATIONS: Illustration by Kristen Phillips.
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Dave Natzke
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