A survey of existing and future Tennessee value-added cattle dairy enterprises

Objective

The objective was to provide a comprehen- sive overview and assessment of Tennessee’s value-added dairy (VAD) industry.

Materials and Methods

Dairy producers and pro- cessors completed a 50-question in-person survey that included the following: (1) respondent information, (2) farm information, (3) processing information, (4) process- ing equipment, and (5) business economics. Data were reported for 15 cow dairy producer-processors separated into existing VAD (EP) and potential future VAD (FP) (n = 8 and n = 7, respectively). Descriptive statistics were run, and independent-sample t-tests were used to identify group differences within questions.

Results and Discussion

Existing and FP were 39 ± 12 and 38 ± 13 yr old, respectively. Seven EP processed their milk. All FP planned to process their milk, but some EP and FP did or planned to supplement their raw milk needs by purchasing Tennessee milk (n = 5). Off-farm income was a minor household income source (9 ± 15%) for EP, whereas FP relied heavily on off-farm income (62 ± 39%). In Tennessee, 6.2% of all cattle dairies were also VAD, primarily located in East Tennessee. Ice cream and creamline milk were produced most often; fluid milk had the highest annual production volume (270,287 L) per EP. Creamline milk and aged cheese were the most considered by VAD. Existing and FP were in good financial standing with a low debt-to-asset ratio (<40%).

Implications and Applications

Study outcomes will be used to assist dairy farmers in Tennessee and surrounding states who are considering entering or expanding VAD through marketing, production, or economic suggestions.