Going for the Win: Drivers of Innovation in the Dairy Industry
This webinar highlights how strategic funding and applied research, outreach, and demonstration are delivering practical, science-based solutions to critical challenges in the dairy industry. The dairy industry continues to face complex challenges that demand innovative, evidence-based solutions to maintain the industry’s ability to meet consumer demand for dairy products in ways that are economically viable, efficient, and sustainable. This session will spotlight collaborative efforts between public and private sectors, researchers, and extension professionals that are driving real change—on the farm and beyond. We’ll explore innovations in animal feeding strategies, solutions to labor shortages, advances in production efficiency, and smart approaches to managing dairy waste. This webinar offers a compelling look at how investment in agricultural research directly supports a thriving dairy sector.
Jon Winsten – Going for the Win: Reducing Cost and Increasing Public Benefit
Jon Winsten outlined a transformative model for dairy production that he calls low-overhead dairy grazing, contrasting it with conventional high-capital confinement systems. Drawing on his personal background in both Vermont and New Zealand dairying, Winsten explained how this pasture-based approach can deliver greater profitability per acre and per unit of milk, while reducing financial risk. Through a Monte Carlo analysis using a decade of milk and feed price data, his team found that a 250-cow low-overhead grazing operation averaged $3.64 in net income per hundredweight of milk—about four times higher than the national average—without a single negative outcome across simulations.
Beyond its private profitability, Winsten emphasized the public benefits of this system. Permanent vegetative cover significantly reduces nutrient loss, with modeled results showing 71% less phosphorus and 62% less nitrogen runoff compared to traditional cropping systems. He noted that these environmental and social advantages—healthier herds, stronger rural economies, and improved water quality—justify targeted public policy support. Winsten called for initiatives such as debt restructuring programs, expanded technical assistance, and aggregated carbon and water quality credit markets to help dairy farmers transition toward more sustainable, competitive, and publicly beneficial production systems.
Alejandro Gutiérrez-Li – Labor and Agriculture
Alejandro Gutiérrez-Li examined the growing labor challenges across U.S. agriculture with a focus on the dairy sector. He explained that while labor accounts for about 10% of total production costs in dairy, producers are facing an acute shortage of workers willing to take on physically demanding farm jobs. The H-2A guest worker program—currently the only legal avenue for bringing foreign agricultural labor to the U.S.—has helped fill gaps in seasonal sectors like fruits and vegetables but excludes non-seasonal industries such as dairy and livestock. This limitation has left many dairy farms without sufficient labor to meet daily operational needs.
In response, Gutiérrez-Li highlighted automation as a critical long-term solution to the labor shortage, emphasizing the rise of robotic milking systems (RMS) that use sensors and robotic arms to automate milking. Drawing on survey results from Wisconsin and Minnesota dairy producers, he noted that farmers using RMS have reported higher productivity, improved cow comfort, and reduced worker stress. However, high installation and maintenance costs continue to pose significant barriers, particularly for small and medium-sized farms. Gutiérrez-Li concluded that while automation holds promise for addressing persistent labor constraints, smaller producers may face increasing economic pressure without policy or financial support to access new technologies.
Shaheer Burney and Luis Peña Lévano – Labor Constraints and Automation Trends in California and Wisconsin Dairy Farming
Drs. Shaheer Burney and Luis Peña Lévano presented findings from a recent survey examining labor challenges and the adoption of automated milking systems (AMS) in California and Wisconsin—the nation’s two largest dairy-producing states. Their research, supported by the Sustainable Research and Education grants (NCR-SARE) program, revealed stark contrasts between the states: California’s large-scale dairies rely heavily on immigrant labor, while Wisconsin’s smaller, family-run operations depend more on household and local workers. Across both states, persistent labor shortages and high turnover rates are driving interest in automation technologies that can reduce dependence on manual labor. However, despite heightened awareness and publicity, adoption remains limited—only about 5% of surveyed farmers currently use AMS, with 15% considering it.
The presenters noted that while automated milking can improve efficiency, reduce labor needs, and potentially increase milk yield, high upfront investment costs—often exceeding $1 million for mid-sized farms—are a major barrier. Their survey found that potential adopters tend to have higher household incomes and larger, more diversified operations, suggesting that automation remains out of reach for smaller producers. Reducing reliance on manual labor was the top motivation among adopters, followed by productivity gains and the desire to modernize before generational transfer. Dr. Pena Levano concluded that while full automation is still cost-prohibitive for many, semi-automation and targeted policy or financial support could offer a more feasible path forward for the broader dairy sector.
Mark McGuire – Idaho Sustainable Agriculture Initiative for Dairy (ISAID)
Mark McGuire discussed the University of Idaho’s Idaho Sustainable Agriculture Initiative for Dairy (ISAID), a USDA AFRI Sustainable Agricultural Systems project launched in 2020 to turn dairy manure into valuable resources that support both environmental and economic sustainability. As Idaho’s dairy sector plays a major role in the state’s economy, ISAID brings together more than 20 faculty to explore how nutrient recovery and manure-based byproducts can enhance soil health, reduce waste, and foster new business opportunities for rural communities. The program integrates research, extension, and education, with students developing business plans for emerging manure-based technologies.
McGuire highlighted several innovations developed through the initiative, including pilot-scale composting systems enhanced with biochar and zeolite, bioplastics derived from manure fermentation, and hydrothermal carbonization to produce nutrient-rich hydrochar. Another key project, the “Clean Water Machine,” filters wastewater from dairies and processing facilities, producing phosphorus-enriched biochar and reusable clean water. These technologies are being demonstrated across Idaho through mobile testing units, showing producers the potential for low-cost nutrient recovery systems that transform dairy waste into profitable and sustainable products.
This program is supported in part by the Agricultural and Applied Economics Association and the US Department of Agriculture’s Economic Research Service, and the National Agricultural Statistics Service.