Some 55% of dairy producers attending the Professional Dairy Producers of Wisconsin (PDPW) Business Conference say they plan to expand their operations within the next five years. Another 26% plan to modernize their facilities while only 8% plan to exit the business.
The real-time poll was taken during the opening session of the Conference this afternoon (Tuesday) here in Madison, Wis. About 500 dairy producers responded to the survey.
Roughly 70% of those answering the survey said they were using a planning milk price of $14 to $15/cwt for 2010. Nineteen percent said they were using a planning price of $12 to $13, and 7%, $16-$17.
Dave Kohl, a Virginia Tech ag economics professor emeritus and master of ceremony, also asked whether dairy producers were experiencing any difficulty obtaining short or long-term financing for their operations. Twenty-three percent acknowledged they were, but 49% said they were not. Another 29% they were not looking to borrow more money.
Kohl also asked the group what they thought the biggest challenge will be for the next generation of dairy producers. Thirty-nine percent said special interest groups would be the biggest challenge, followed by environmental regulations (34%) and profitability (25%).
The PDPW Business Conference has a total registration of nearly 1,300 producers and dairy industry personnel. It runs through tomorrow at the Alliant Energy Center Exhibit Hall, also site of World Dairy Expo.