4 Ways the Dairy Industry Is Leading in Sustainability Today
The topic of dairy sustainability is not new. While “sustainability” means different things to different people, farmers—including dairy farmers—are inherently sustainable.
One definition of sustainability is:
"Meeting the needs of the present without compromising the ability of future generations to meet their own needs."
This aligns with how today’s dairy producers are evolving. Below are seven key ways the U.S. dairy industry is demonstrating its leadership in sustainability and why the story deserves to be told.
1. Producing More Milk with Fewer Cows
In 1944, the U.S. dairy herd peaked at 25.6 million cows. By 2024, that number decreased to just 9.3 million—yet milk production per cow soared from 4,600 pounds to approximately 24,000 pounds annually.
This dramatic increase in efficiency means fewer resources are needed to produce the same or greater output.
2. Using Significantly Less Land, Water and Feed
It's easy to assume that such a leap in productivity would have a greater environmental impact, but studies show the opposite. Between 1944 and 2020 dairy production has reduced its environmental footprint per unit of milk:
- Land use decreased by 90%
- Water use dropped by 65%
- Feed use was cut by 77%
This proves that better productivity can go hand-in-hand with resource conservation.
3. Improving Nutrient and Manure Management
Dairy producers today use advanced cropping practices and manure management systems that reduce nutrient runoff and improve environmental outcomes for soil and water.
These improvements are intentional and part of broader farm stewardship strategies.
4. Adopting Farm Practices That Prioritize Long-Term Sustainability
Farmers are choosing methods like:
- Cover cropping
- Reduced tillage
- Enhanced forage rotations
These choices benefit both the environment and the farm’s long-term viability. Sustainability isn't an accident. It’s a smart business decision.
Why Has Dairy Become a Better Steward?
The simple answer is that the dairy industry wants to.
Dairy farmers care deeply about their cattle, their land, their communities and their employees. They want to care for the cows that provide their livelihoods, the employees who tend to their animals, the communities where they live and work and the land, which is their legacy.
Another crucial aspect is that farmers must care for the components of their business because it is, fundamentally, a business. Farmers need to be competitive in how they run their operations.
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Supporting Sustainability Through Farmer Compensation
Dairy producers need to be compensated for adopting more sustainable practices than in the past. Economic incentives are a powerful way to encourage positive changes. Both regulated and voluntary payments can also assist in making practice changes with proven benefits.
This dedication to doing better than yesterday—and indeed the best job ever—doesn't go unnoticed by processors and co-ops either. The dairy industry aims to demonstrate the amazing work being done to consumers of delicious and nutritious dairy products.
Why the Story Needs to Be Told
I started with the voluntary aspects of why the dairy industry is more sustainable today than ever because I truly believe there's a passion to do the best job possible—it's simply the right thing to do.
For those of us involved in the dairy industry, we have the benefit of witnessing and experiencing this evolution of stewardship firsthand. It's well known that most farms, especially dairy farms, are still family-owned. Cow comfort is prioritized because a happy and content cow produces more milk. Diets are optimized because it's in the farmer's best interest to care for their cows.
Those companies that process dairy into a wide array of products should also be recognized for their sustainability and efficiency on the manufacturing side—again, producing more with less and becoming more sustainable than ever.
We know these things, and I believe it's in the dairy industry's best interest to continue telling this story. Consumers have a genuine desire to know where their food comes from and how it's made. Given all the good work being done, people genuinely appreciate the effort and care that goes into their food when they learn the real story.
Let’s Keep the Momentum Going
At Compeer Financial, our dairy specialists are here to support your goals with trusted guidance and custom solutions.
Connect with Compeer's team of dairy industry experts, like vice president of commercial financing Ty Rohloff, to explore lending options, sustainability strategies and long-term plans tailored to your operation.