California is the nation’s largest farming state, producing more than 250 commercial food and fiber commodities, and dairy farming is the largest of these commodity groups. California has been the nation’s largest milk producer since 1993 and is also the country’s leading producer of butter, ice cream, yogurt, Mozzarella cheese, nonfat dry milk and whey protein concentrate. It is the second largest cheese producer.

Nearly 2,000 dairy farms stand at the center of the state’s vast and growing dairy industry. The state’s dairy farms house 1.8 million milk cows, up 88,000 from 2004. California’s growing dairy business comprises not just dairy farms and their suppliers, but dairy processors and manufacturers, along with dairy products wholesalers, retailers and foodservice suppliers. In 2007, California produced nearly a quarter of the nation’s cheese production and a fifth of its milk supply.

The dairy industry makes a big economic contribution to the state. According to the CDFA, dairy farming is the leading agricultural commodity in California, producing $6.9 billion in annual sales in 2008. The milk that leaves the dairy farm flows into society to become value-added products that create jobs and revenues in local communities. The study reported that the state’s dairy business had an economic impact of $61.4 billion and generated 435,000 full-time jobs within California in 2007.

Rapid Growth Since The 1970s

California’s dairy industry began a period of rapid growth in the 1970s that continues today. Shifting demographics and changing tastes have played a role in this growth, resulting in a wider variety of dairy products and increased growth in certain product categories.

Cheese is California’s fastest growing dairy product and 47 percent of the state’s milk supply goes to cheese production. In the period between 1990 and 2007, California cheese production grew by 226 percent, from 702 million to 2.29 billion pounds. California’s more than 50 cheesemakers produce 250 different varieties and styles of cheese. Operations range from small producers famous for their handmade cheeses to some of the country’s largest cheese plants.

Following is an overview of California’s dairy industry and how its production of milk is being used today: