Economic Research Report No. (ERR-305) 52 pp

February 2022

Sources, Trends, and Drivers of U.S. Dairy Productivity and Efficiency

The U.S. dairy sector has undergone substantial structural change characterized by a shift to larger and fewer dairy operations, concentrated in relatively few States. This report measures and analyzes the dairy sector’s productivity growth and efficiency and identifies proximate drivers and sources of this growth in the face of the structural change observed from 2000 to 2020.

Keywords: U.S. dairy, productivity growth, total factor productivity, milk output per cow, technological progress, technical efficiency, scale-and-mix efficiency, environmental effects, conventional dairy, organic dairy

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