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Nebraska intensifies dairy expansion efforts

In order for Nebraska to grow its dairy sector, the state will need more dairy processing—that was the main message coming out of the recent Grow Nebraska Dairy Summit in Lincoln.

Bill Thiele, a dairy farmer from Clearwater and president of the Nebraska State Dairy Association, says more competition for milk will benefit all producers.

“Unfortunately, we have very few choices as producers as to where to sell our milk in Nebraska,” Thiele says. “We do need processors here to create the competition.”

AUDIO: Bill Thiele

Dairy industry leaders and state officials say they are actively working to recruit milk processors to the state.  Nebraska director of agriculture Greg Ibach says they are making progress.

“I think we’re at a point where we’re an attractive alternative to a processor here in Nebraska now,” Ibach says, “and in working with the Department of Economic Development, I think it’s just a matter of time before we find that right processor to step forward and declare their intentions and we have some excitement around that.”

AUDIO: Greg Ibach

Rod Johnson, who works with the Midwest Dairy Association in Nebraska, says the industry is poised for growth in the state.

“There are a lot of people out there looking for opportunities to move, particularly out of the California area with the drought and the situation out there,” Johnson says.  “A lot of their feed comes from the Midwest, so they’re looking to move closer to their feed source. So that is a big opportunity over the next few years.

“The biggest challenge we have in Nebraska is the markets and making sure we have adequate processor capacity for any increased production that we have here in the area.”

AUDIO: Rod Johnson

Most of Nebraska’s dairy cows and milk processing is concentrated in the eastern third of the state.  Officials say they would like to see the industry expand into central Nebraska.