Economics
The Texas dairy industry boosts local, state and national economies.
Jobs and income are generated when farmers purchase machinery, trucks, fuel and other equipment; buy feed and healthcare for their animals; and use services such as banking and insurance. And after the milk leaves the farm, it continues to create jobs in transportation, distribution, processing and retail markets.
Dairy feeds the economy:
- Texas has 375 Grade A dairies with an estimated 539,000 cows. (November 2018)
- Texas is the fifth largest dairy producing state in the nation.
- Texas’ dairy farmers produce more than 12 billion pounds of milk (about 1.4 billion gallons) annually.
- The average Texas dairy farm’s herd has 1,188 cows (eighth nationally).
- Each cow produces an average of 1,900 pounds of milk (221 gallons) per month. (November 2018)
- Milk produced in Texas in 2017 had an estimated value of almost $2 billion, which is 7.4 percent of the total value of all Texas agriculture commodity projection.
- Dairy (milk and cows) brought in more than $2.3 billion in total cash receipts in 2014; total contribution to Texas’ gross domestic product was $1.98 billion.
- The total economic impact of the dairy industry in Texas in 2017 was estimated at more than $3.5 billion – milk is ranked third in Texas agriculture commodities for its economic impact.