Idaho

Idaho’s $4 Billion Dairy Boom: Why the Gem State is Defying West Coast Trends

Tue, 03 Feb 2026 14:38:52 GMT

While milk production across the West Coast faces a period of contraction, Idaho is carving out a different narrative. With USDA reporting the state’s production value near $4 billion in 2024, Idaho has transitioned from a regional player into a global dairy powerhouse. According to Rick Naerebout, chief executive officer of the Idaho Dairymen’s Association, this surge isn’t accidental. It is the result of a unique confluence of business-friendly policy, aggressive vertical integration and a fundamental shift in how dairy cattle are valued.

A Surge on a Massive Base

The sheer scale of Idaho’s recent growth is impressive. Naerebout reports the state has seen consistent growth rates of 5% to 8% per month year-over-year for the last 15 months. For 2025, Idaho is projected to be up 7.5% in total milk production.

“That 7.5% is on a very big base,” Naerebout explains. “It equates to roughly 3.5 million pounds of milk a day more this year than we had last year. We’ve definitely turned on the milk production.”

This growth has been facilitated by two primary catalysts. First, Idaho’s dairy producers are entering the current economic downturn with exceptionally healthy balance sheets following strong financial performances in 2024 and early 2025. Second, and perhaps most importantly, regional processors have finally lifted base restrictions that limited producers to fractional growth for years. With those caps removed, the Idaho dairy industry has surged to meet the available capacity.

The Magic Valley: The Heart of the Industry

The epicenter of this expansion remains the Magic Valley. While growth is visible across the state, approximately 75% of Idaho’s dairy industry is concentrated in this region. The concentration allows for an infrastructure of scale that is difficult to replicate elsewhere.

Idaho’s operations are notably larger than the national average, boasting nearly 2,500 cows per dairy. This scale, combined with a business-friendly climate — including the absence of agricultural overtime pay — allows Idaho producers to maintain lower costs than their neighbors in California or Washington.

Components and the “Black Calf” Phenomenon

Interestingly, the growth isn’t just coming from more cows; it’s coming from “better” milk. According to Naerebout, while volume is up 7.5%, the increase in milk components means the actual yield for processors is closer to 9%. This allows plants to produce more cheese, butter and powder for every pound of milk delivered.

Producers in Idaho, like other states, are also shifting culling practices.

“We’re hanging onto cows because they’ve got a black calf in them, and that calf is worth roughly $1,500,” Naerebout says.

The beef-on-dairy trend has become ubiquitous in Idaho, with adoption rates significantly higher than the national average of 70%. For many Idaho producers, the day-old calf has become a high-value commodity that provides immediate cash flow with minimal risk, as many are partnered with large feedlot operators, like Simplot, or feedlots to take the animals immediately.

Resilience Through Risk Management

The dairy industry is notoriously volatile, yet Idaho has shown remarkable resilience. Over the last 30 years, the state has only seen negative growth twice: in 2009 and 2013. Naerebout attributes this to a sophisticated approach to business that sets Idaho producers apart.

“Our dairymen are very savvy businessmen,” he notes. “We have a higher-than-average use of hedging tools. They insulate themselves from market downturns by making sure they are hedged.”

This financial discipline, coupled with being well-capitalized, allows these large-scale operations to weather economic storms that might shutter smaller farms in other regions.

The Shift to Vertical Integration

Perhaps the most significant structural change in Idaho’s dairy landscape is the move toward vertical integration. Unlike the traditional cooperative structure involving hundreds of members, Idaho has seen the rise of “processor-producers.”

Facilities like Idaho Milk Products and High Desert Milk were founded by small groups of dairy families — sometimes fewer than six — who pooled their capital to build their own processing plants. While Naerebout describes the startup phase of these ventures as “absolute hell” where families nearly lost everything, those who survived are now capturing the margins that previously went to third-party processors.

“They are capturing more margin for their business and using it as a form of risk mitigation,” Naerebout says.

This evolution from simple milk producers to sophisticated industrial processors represents the future of the Idaho dairy model.

Looking Ahead

As the industry faces a tightening economic window, Idaho’s producers remain focused on the long term. The goal for many is not just survival, but the creation of viable, multi-generational businesses. By combining aggressive adoption of technology, sophisticated risk management, and a willingness to invest in the processing side of the value chain, Idaho is proving that even in a mature industry, there is still significant room for a “growth state” to thrive.

“Idaho has been, and will likely remain, a growth area for plants and processors alike,” says Phil Plourd, president of Ever.Ag Insights. “It’s a hospital environment where all the stakeholders seem aligned around growing the industry.”

With strong components, high-value beef-on-dairy calves and a business environment that rewards scale, Idaho is well-positioned to remain the cornerstone of Western dairy production for the foreseeable future.

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The Cost of Coexistence With Wolves

Mon, 14 Jul 2025 17:13:14 GMT

Wolves continue to cause ranchers havoc, including significant income loss. Recent research estimates the wolves are causing some impacted ranchers in the Southwest to lose 28% of their income potential.

“While the expansion of gray and Mexican gray wolf populations is often hailed as a conservation success, the consequences for ranching families can be gruesome, costly and complex,” says Daniel Munch, American Farm Bureau Federation economist. “They are threatening the safety of ranch families and their pets and livestock, as well as the long-term survival of multigenerational ranches and the rural economies they anchor.”

Munch summarized a recent University of Arizona study that focused on the Mexican gray wolf and analyzed both direct livestock depredation and indirect effects such as stress-induced weight loss and elevated management costs based on 2024 cattle prices. Findings are based on survey responses from impacted ranchers, modeling of herd-level financial outcome and county-level livestock performance trends.

“In areas with wolf presence, even a moderate level of impact, such as 2% calf loss, 3.5% weight reduction and average management costs, can reduce annual ranch revenue by 28%,” Munch says.

While the study focuses on Mexican gray wolves in the Southwest, the core challenges it identifies — livestock depredation, herd stress and weight loss, increased management costs and difficulties accessing timely compensation — are not unique to that region. Ranchers across the northern Rockies, Pacific Northwest and Great Lakes states report similar experiences as wolf populations have expanded.

“Because these economic stressors stem from common predator-prey dynamics and livestock production systems, the study’s findings provide a credible framework for estimating broader impacts,” he says. “This Market Intel draws on that foundation to illustrate the tangible financial risks associated with predator recovery and highlight the need for responsive, producer-informed wildlife policy in all regions affected by wolf activity.”

Key statistics shared by Munch in his article, “ Wolves and the West: The Cost of Coexistence ,” include:

$1,336 average value loss per calf due to wolves. Whether the calf was a day old or nearly ready for market, the rancher loses its full market value, estimated at $1,336 in 2024 for a 525 lb. calf.
A 2% loss of calves could reduce a 367-head ranch’s net income by 4%, or about $5,195, for that year. At higher loss levels, such as 14% of calves, net income could fall by as much as 34%, or roughly $42,599, in that same year.

When a cow is killed, the financial hit extends over multiple years.

“The operation not only loses that year’s calf, but also future offspring, along with the revenue and herd stability that cow would have provided,” Munch explains. “Ranchers then have to retain or buy replacements. This means fewer animals are available for sale, working capital must be used to buy additional replacements and herd development is ultimately delayed. Excluding these long-term impacts, the revenue loss associated with the loss of a single cow was estimated at $2,673.”

(Data: American Farm Bureau Federation)

Figure 2 displays the calculated value of calves lost under this scenario, assuming each calf is valued at $1,336. This generates a loss of 13,514 calves out of an inventory of 1.87 million calves valued at $18 million in wolf-occupied counties. The states with the highest number of calf depredations under this scenario are Montana ($3 million; approximately 2,307 calves) and Idaho ($2.7 million; approximately 2,044 calves).

Keep in mind this method assumes static wolf presence at the county level. Wolves regularly traverse dozens of miles per day, crossing county and state borders, so county-level presence can vary widely year to year.

58% of those surveyed had stress- or depredation-related wolf impacts on their operation (compared to just 38% reporting depredation).
3.5% reduction in average calf weaning weight (18.4 lb.). According to Munch a figure supported by published field research — can significantly reduce revenues across an entire herd.

At the $2.54 per lb. value reference in the study ($1,336/525 lb. average), a ranch that markets 80 head would lose out on $3,738 in marketable weight value.

“Weight loss can be much higher in regions with elevated wolf activity,” Munch says. “If that same ranch experienced a 10% reduction in weaning weight, the loss would exceed $10,600 before even factoring in additional impacts like reduced conception rates.”

(Data: American Farm Bureau Federation)

Using these assumptions about ranch exposure to wolf presence and average weight loss, Figure 3 presents the estimated revenue loss by state. In total, more than $50 million in potential calf weight value was lost due to wolf presence, including $8.6 million in Montana and $7.6 million in Idaho alone.

Ranchers reported an average cost of $79 per cow for conflict avoidance measures and associated labor.

Wolf presence forces ranchers to change the way they manage their operations — often at a steep cost. In wolf-occupied areas, ranchers routinely implement additional strategies to deter predation, respond to attacks and monitor herds across expansive rangelands.

“These management efforts are both labor- and resource-intensive,” Munch says.

Even before accounting for any depredation or stress-related weight loss, these management expenses alone reduced net returns for the average ranch by 19%. Through interviews and surveys, producers indicated they spent anywhere from several thousand dollars to over $150,000 per year on these efforts.

“For our analysis, we convert the $79 per cow figure to $55.30 per calf based on their 70% calf crop assumption,” he explains. “We then apply this per-calf cost to estimate statewide wolf-management expenses, using the study’s finding that 58% of ranchers in wolf-occupied counties experience wolf-induced stressors. Based on these assumptions, ranchers nationwide spend over $60 million each year on efforts to mitigate the impacts of gray wolves.” (Figure 4)

(Data: American Farm Bureau Federation)

All combined, on a ranch experiencing a modest 2% calf depredation and 3.5% weight loss that also spends the average reported amount on conflict avoidance, annual ranch revenues are reduced by 28% ($34,642). These combined costs, reflecting $128 million in annual costs to U.S. ranchers, are displayed in Figure 5.

(Data: American Farm Bureau Federation)

45% drop in the ranch’s long-term earning potential. The study projected what repeated losses from wolves would do to a ranch’s profitability over 30 years. Even a moderate level of impact — losing 2% of calves and 3.5% lower weights — would reduce the ranch’s net present value by more than $191,000.

“In plain terms, that’s a 45% drop in the ranch’s long-term earning potential,” Munch says.

The study estimates that, without wolf impacts, the ranch would generate about $420,000 in long-term profits (in today’s dollars). With average wolf-related losses, that shrinks to $228,000.

“While a single year’s loss might seem manageable, the effects compound over time,” Munch says. “Smaller calf crops mean fewer replacements and fewer animals to sell, while lower weights reduce revenue year after year. These cumulative impacts ripple through herd management and finances, steadily eroding profitability and increasing the odds that the operation may not be financially sustainable in the long run.”

Munch summarizes if predator recovery efforts are to be economically sustainable, they must be accompanied by policies that recognize the people on the front lines: those whose livelihoods now depend not only on their animals but also on a system that values and supports the cost of coexistence.

“That’s the heart of the issue,” Munch explains. “For many ranching families, the return of wolves is not just a wildlife management question, it’s a daily reality shaped by decisions made in distant urban centers, often by voters and officials who will never have to look into the eyes of a mother cow searching for her calf. Ranchers are the ones bearing the real-world costs of policies shaped far from the range. And they’re doing so while continuing to care for livestock, steward the land and feed a growing world.”

New $20 Million Feed Mill Expansion Unveiled in Idaho

Thu, 12 Sep 2024 15:42:43 GMT

Beef and dairy producers throughout Idaho may soon be receiving steamflaked corn and calf grains from a newly expanded feed facility in the state. Scoular, a global agribusiness company based out of Nebraska, recently completed a $20 million expansion of its state-of-the-art feed blending facility located in Jerome, Idaho.

According to the company, the expansion adds a 120-feet high concrete feed mill, boosting the facility’s production capacity by 35% and delivers a 40% increase in storage capacity.

“Scoular’s mission is to deliver safe, reliable and innovative solutions to our feed and food customers around the world,” Scoular CEO, Paul Maass, said in a company. “This new investment is a perfect example of meeting our customers’ demands and bringing forward the ideal solutions. We are thrilled to continue to make growth investments in this important region and industry.”

Updates to the facility will help provide two new capabilities, including:

A steamflaking process that processes corn and barley into flakes and makes the feed more digestible for cattle. The corn is steamed, heated, then pressed into a flake.
A pellet mill to make feed pellets. Pellets are easy to transfer, handle and proportion for optimal nutrition. Feed pellets are typically used for feeding calves and beef cattle.

“The expansion shows Scoular’s customer-focused approach,” said Jeff Ackerman of Bettencourt Dairies. “Scoular is helping us provide the right nutritional profile to the animal at the right time. Tailor-made feed blends are essential.”

As the dairy sector continues to grow in the state, this expansion will provide both beef and dairy producers with an additional resource for purchasing feed.

“To see a company like Scoular expand means good news for producers,” added Rick Naerebout, CEO of the Idaho Dairymen’s Association. “It gives producers more options for how they want to handle feed on their farms.”

This expansion not only provides more choices for producers but also reinforces Scoular’s commitment to bolstering the local agricultural community.

“Agriculture drives the Magic Valley’s economy, and Scoular has made it a priority to support the industry through innovation, state-of-the-art facilities and programs that support local producers,” said Andy Hohwieler, a Scoular Regional Manager based in Twin Falls. “With our latest investment, we look forward to creating new feed products that create solutions for end-users.”

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Strange Bird Flu Outbreak, HPAI, Now Detected at Idaho Dairy

Thu, 26 Sep 2024 19:10:39 GMT

The Idaho State Department of Agriculture (ISDA) announced that HPAI, known as highly pathogenic avian influenza, or bird flu, has been found in dairy cattle in Idaho. This now brings the number of affected states to four, adding more evidence the virus may be spreading cow to cow.

The cows were recently brought into the Cassia County dairy from another state that had found HPAI in dairy cattle, according to the ISDA.

The USDA Animal and Plant Health Inspection Service (APHIS) announced that an investigation into mysterious illnesses in dairy cows in three states—Kansas, New Mexico, and Texas—was due to HPAI and that wild birds are the source of the virus.

Symptoms of HPAI in cattle include:

Drop in milk production
Loss of appetite
Changes in manure consistency
Thickened or colostrum-like milk
Low-grade fever

At this stage, there is no concern about the safety of the commercial milk supply or that this circumstance poses a risk to consumer health. The pasteurization process of heating milk to a high temperature ensures milk and dairy products can be consumed safely.

The ISDA encourages all dairy producers to closely monitor their herd and contact their local veterinarian immediately if cattle appear to show symptoms. HPAI is a mandatory reportable disease, and any Idaho veterinarians who suspect cases of HPAI in livestock should immediately report it to ISDA at 208-332-8540 or complete the HPAI Livestock Screen at agri.idaho.gov/main/animals/hpai/ .

For more on HPAI, read:

Idaho Dairy Demo Center Planned

Wed, 22 Mar 2023 13:41:19 GMT

The University of Idaho is building a massive dairy research center focused on the industry’s sustainability.

The Idaho Center for Agriculture, Food and the Environment (“CAFÉ”) will feature a modern dairy facility, with the size and scale of a commercial dairy, plus adequate farming acres to grow and study crops used for dairy nutrition.

With dairy sustainability as a priority, researchers at the facility also will focus the biodiversity of crops grown in the region, optimization of natural resources, and value-added revenue streams in dairy production like bio-based products and carbon credits.

Food science research and agricultural workforce development are additional priorities of CAFÉ, which also will feature a state-of-the-art, interactive outreach and research center. Design and funding are a collaborative effort between the University of Idaho, the Idaho Dairymen’s Association, the state of Idaho, and industry partners.

Education partnerships also are in place with the College of Southern Idaho, Brigham Young University, and Boise State University.

Three Idaho communities within and approximate 60-mile radius will host the project. The dairy facility will be based near Rupert; the outreach and education center near Jerome; and the food processing education center on the College of Southern Idaho campus at Twin Falls.

The $45-million, multiphase project is slated to start milking cows by the end of 2024. Once fully operational, it will simulate a 2,000-cow dairy. Cargill and Redox Bio-Nutrients both have pledged $500,000 to the capital campaign.

Its developers say the project eventually will be “the most significant research hub in the U.S. for dairy sustainability and innovation.” Idaho ranks third in the nation in both dairy cow numbers and milk production.

The Fall Cattle Drive Now Includes Calving Season at Idaho Ranch

Before winter arrives, American ranchers are rushing to get cattle and calves settled and sorted.

That fall drive includes fall-calving cows. It’s a growing trend as more herds shift to delivering a fresh crop of calves ahead of seasonal snow showers.

“Oh, he’s a little one,” Tucker Shaw says as he and his son, Joe, hoist a calf to weigh it on a mobile scale. “He’s just 60 pounds.”

The Shaw Cattle Co. is nestled against the bleached bluffs of Western Idaho along the Boise River just outside Caldwell. With roughly 1,400 calves expected this fall, the Shaw team is on the hunt to tag and treat a new crop of babies.

“We’ll take off in the mornings and very first thing two or three of us will go in different directions to do inventory,” says Tucker.

Tucker and Joe Shaw tag baby calves.

(Maggie Malson)

“We’re getting 40 to 50 calves a day, every day and so it’s a nonstop job just to get through the calves to make sure everything’s healthy, mothered up and nursing,” explains Sam Shaw.

These calves are the future of an operation that began with their grandfather.

“He worked for a guy in high school that had registered Hereford cattle,” recounts Tucker. “That guy, when he graduated, promised him Hereford heifer.”

World War II came calling but when their grandfather returned home, that promise was kept.

“There was a letter waiting at his folks’ house when he got back from World War II that said, remember, I still owe you a heifer,” Tucker says. “That heifer is what got my family into the cattle business.”

They lived in McCall, Idaho, at the time but in 1959, the family moved from the mountains, south, to their current location just outside of Caldwell.

The Shaw Cattle Co. calves roughly 1,400 cows each fall.

(Maggie Malson)

“We moved here just because of the winters,” explains Sam. “The winters were a lot milder than it was in McCall and this is great cow country.”

Plentiful irrigation water and abundant permanent pasture have helped the Shaw Cattle Co. thrive as a Hereford, Angus and Red Angus seedstock business.

“Our normal rainfall is about ten inches a year, so everything has to be irrigated,” says Tucker. “As long as we’ve got water, it’s a great place to be.”

Today, the operation sells roughly 500 bulls a year supported by a robust artificial insemination (AI) and embryo transfer (ET) program.

“We’re identifying those cows that are the elite cows in our operation and trying to propagate those genetics,” Sam says. “We don’t get just 1 or 2 calves out of them a year but we’re trying to get 10 or 15 calves out of them every year.”

They are also using DNA testing and genetic mapping to make selections and add depth to their understanding of the herd.

“Part of the registered cattle industry is that over the years, we keep adding more and more layers of data,” explains Tucker. “That gives us more information about our cattle and the breeding stock that we’re able to offer to our customers.”

A new baby calf stands tall at Shaw Cattle Co.

(Maggie Malson)

As the latest calf crop lands hock deep in green grass, this ranch family is excited about the work.

“Today we probably have somewhere between 35 and 42 to tag,” Tucker says. “It looks like Monday we tagged 65 calves that day and so that was as big of a day as we’ve ever had.”

They’ll keep hunting newborn calves curled up and waiting to be discovered.

“I love seeing the next generation of genetics,” smiles Sam. “You get to look at these cattle and see, yeah, either we messed up or no, we did it right.”

That’s an important job and it comes with a long tail.

“The genetics we produce today, our customers won’t reap the benefits of for 3 to 5 years,” explains Sam. “Ultimately it’s to produce a better product for the consumer.”

This fall as each calf is checked, counted, cared for and celebrated this family of ranchers is driving forward with a focus on future seasons of the operation.