Dairy demand fuels growth across Iowa

The dairy industry is making a comeback in Iowa as large and small processors take advantage of trends that are simultaneously prompting increased exports and domestic demand.

U.S. dairy exports surged to a near-record $9.5 billion in 2025, a 15% year-over-year increase. Meanwhile, shifting domestic consumer trends mean that demand is booming for high-protein and specialized dairy products.

Iowa's farmers are joining the growth. Iowa was a perennial top-10 dairy state throughout the early 1900s as dairy cows were common on many farms. The state slipped out of the top 10 in the middle of the century as specialization shifted production to states like California and Wisconsin, but recent USDA statistics show that Iowa has once again climbed back into the top 10 with growth in both small and large dairies serving different markets.

Programs like Choose Iowa and the state's Dairy Innovation Fund are helping smaller producers expand, many serving specialty markets.

The past two winners of Iowa Farm Bureau's Grow Your Future Award - Hightail creamery of Bremer County and Tenley Farms of Cedar County - are small farms selling milk, cheese curds and ice cream directly to consumers.

At the same time, Daisy is building a new dairy processing plant in Boone to increase production of its sour cream and cottage cheese, which is seeing a demand boost due to trendy high-protein recipes. The plant is expected to source milk from 43,000 cows daily.

You can read more about Iowa's dairy trends in the Livestock section in this week's Spokesman. I'd recommend reading it while enjoying a bowl of ice cream or glass of milk to toast June Dairy Month.