It would be useful if we could look into a crystal ball and see what the dairy industry was going to be like in 2024. That insight would help inform the decisions we are making today that will impact the future.

Without fortune-telling powers, we are left to use the data at hand to make predictions about what will happen to milk prices, feed costs, and other farm expenses. Looking for a way to help producers project profitability on their dairies, veterinarian Kevin Hoogendoorn created an app called Zisk. Zisk is a Polish word for profit, and the app is designed to predict a farm’s profitability over the next 12 months.

Looking at the entire dataset of farms currently utilizing the app, the segment of farms predicted to be most profitable in 2024 are those in the Northwest region milking over 5,000 cows, with a profit per cow of $979. Following closely behind are farms of the same size category in the Southeast region, where profits of $960 per cow are predicted. The third most profit per cow ($936) is expected on farms in the Northeast milking 1,000 to 5,000 cows.

In the Zisk report for 2024, negative returns of $20 per cow are estimated for herds under 250 cows in the Southeast. Positive yet minimal profits of just $89 per cow are forecast for farms under 250 cows in the Southwest. Tied for third least profitability per cow at $154 were farms in the smallest herd size category in the Midwest and Northeast, according the Zisk data.

Breakdowns by region are listed below. For more information about the app, click here to visit the Zisk website.

Midwest: 2,056 herds; average herd size: 975 cows; average production: 78.51 pounds

  • Under 250 cows: 1,072 herds, $154 profit per cow, $2.35 average basis
  • 250 to 1,000 cows: 689 herds, $416 profit per cow, $1.88 average basis
  • 1,000 to 5,000 cows: 250 herds, $794 profit per cow, $1.71 average basis
  • Above 5,000 cows: 45 herds, $851 profit per cow, $1.50 average basis

Northeast: 654 herds; average herd size: 438 cows; average production: 75 pounds

  • Under 250 cows: 448 herds, $154 profit per cow, $2.15 average basis
  • 250 to 1,000 cows: 129 herds, $490 profit per cow, $2.31 average basis
  • 1,000 to 5,000 cows: 65 herds, $936 profit per cow, $2.27 average basis
  • Above 5,000 cows: 2 herds, $477 profit per cow, $0.63 average basis

Southeast: 85 herds; average herd size: 1,417 cows; average production: 70 pounds

  • Under 250 cows: 37 herds, $20 loss per cow, $2.37 average basis
  • 250 to 1,000 cows: 22 herds, $448 profit per cow, $2.53 average basis
  • 1,000 to 5,000 cows: 18 herds, $918 profit per cow, $3.74 average basis
  • Above 5,000 cows: 8 herds, $960 profit per cow, $1.67 average basis

Southwest: 334 herds; average herd size: 2,837 cows; average production: 77 pounds

  • Under 250 cows: 76 herds, $89 profit per cow, $2.11 average basis
  • 250 to 1,000 cows: 45 herds, $542 profit per cow, $2.40 average basis
  • 1,000 to 5,000 cows: 168 herds, $681 profit per cow, $1.44 average basis
  • Above 5,000 cows: 45 herds, $730 profit per cow, $1.70 average basis

Northwest: 203 herds; average herd size: 1,920 cows; average production: 77 pounds

  • Under 250 cows: 35 herds, $225 profit per cow, $2.14 average basis
  • 250 to 1,000 cows: 79 herds, $474 profit per cow, $2.30 average basis
  • 1,000 to 5,000 cows: 73 herds, $667 profit per cow, $1.31 average basis
  • Above 5,000 cows: 16 herds, $979 profit per cow, $2.21 average basis

To comment, email your remarks to intel@hoards.com.
(c) Hoard's Dairyman Intel 2023
November 13, 2023
Subscribe to Hoard's Dairyman Intel by clicking the button below

-