MADISON, Wis. – The overall economic impact of Wisconsin’s dairy industry is bigger than ever, and dairy remains the leading sector of Wisconsin agriculture. This newly released data is from the Contribution of Agriculture to the Wisconsin Economy: An Update for 2022, conducted by the University of Wisconsin-Madison Department of Agriculture and Applied Economics.
Dairy generates almost half of the state’s annual industrial agricultural revenue – and represents nearly 6.5% of the state’s total. Despite recent milk price challenges and the Pandemic, the report shows that dairy continues to significantly impact local Wisconsin communities. According to the report, total agricultural economic impact grew by 11% to $116.28 billion, with dairy’s impact rising 16% to $52.8 billion.
The $52.8 billion economic impact is comparable to some of the largest global companies. For example, Nike and American Airlines each have annual revenues of about $50 billion. Wisconsin’s dairy industry is on par with these recognizable brands in terms of economic impact, making it a true powerhouse in comparison.
“Thanks to our dedicated dairy farm families this report underscores the importance of cheese and dairy to our state’s economy,” says Dairy Farmers of Wisconsin CEO Chad Vincent. “Our collective efforts continue to strengthen Wisconsin’s reputation as the premier dairy state and we will continue to innovate, inspire, and lead the way in delivering the finest dairy products to consumers across the globe.”
Wisconsin’s dairy industry supports 120,700 jobs and every dollar generated by the dairy industry contributes an additional ninety-three cents in revenue for the state.
“One of Wisconsin’s strengths is the diversity of our agricultural industry, but Wisconsin proudly wears the title of America’s Dairyland,” said Randy Romanski, Secretary of the Wisconsin Department of Agriculture, Trade and Consumer Protection. “This report further confirms the impact of our dairy industry on our state’s economy. The hard work of Wisconsin’s dairy farmers, haulers, and processors contributes to the impressive economic impact of our dairy industry.”
Additional key findings from the report include:
- The dairy industry generates 45.4% of the state’s total agriculture activity, making it the single largest contributor to Wisconsin agriculture.
- Dairy, combining both on-farm and dairy processing, contributes $52.8 billion to industrial revenues, a 16% increase from 2017.
- Dairy is an economic cluster that impacts rural and urban areas thanks to the integration of the dairy infrastructure, including the supply chain and other interconnected businesses and associations.
- From 2001 to 2022, the number of dairy processing companies in Wisconsin grew from 162 to 242 – a 49.4% growth
- Dairy processing accounts for about two-thirds of dairy’s total contribution.
Wisconsin’s dairy heritage dates back generations; today, the state leads the nation in dairy innovation and has distinguished itself over the past two decades by winning more cheese awards than any other state or country for its more than 600 types, styles, and varieties of cheese.
The research, The Contribution of Agriculture to the Wisconsin Economy: An Update for 2022, and The Contribution of Dairy to the Wisconsin Economy, completed by the UW-Madison Department of Agricultural and Applied Economics at the College of Agricultural & Life Sciences in collaboration with UW-Extension, provides an economic accounting of Wisconsin’s agricultural and dairy industries.
