Texas could see significant growth in dairy production over the next several years as processing capacity expands to handle milk. Multiple processing facilities dedicated to soft cheese products like cottage cheese, cream cheese and other spreadable cheeses are slated to expand or open over the next two years to meet growing demand.
Cheese production was the major destination for the 226 billion pounds of milk produced in the U.S. in 2021. It takes 10 pounds of milk to make 1 pound of cheese.
A facility in Amarillo will open later this fall, while facilities in Stephenville are expected to expand. Another facility in Lubbock is expected to open in 2024, and a new facility in western Kansas is expected to pull some milk from the Texas Panhandle.
Around 80% of Texas milk is produced by dairies in the Texas Plains.
“Texas dairies added about 25,000 cows to their production capacity this year, and the processing expansion will help producers add to that growth,” she said. “Processing capacity is one of the limiting factors holding production back.”
Liquid milk consumption continues to decline, but dairy products for lactose intolerant consumers continue to trend upward, Spencer said. Ice cream demand during the summer typically results in seasonally higher milk prices.Whey, which goes into products like muscle recovery powders and baby formula, has become a growing piece of dairy demand, Spencer said. It is a byproduct of cheese production and was considered waste before a use was found for its 99% amino acid protein.
Spencer said consistently expanding dairy options for consumers is driving expansion of overall U.S. production.
“Producers are very progressive in Texas, and so they are adapting to the challenges to maintain production and profitability,” she said. “The demand is there, and I think there is an opportunity for Texas dairy production to continue growing.” –Adam Russell Texas A&M AgriLife Communications