New "Vermont Dairy Delivers" Report Highlights State Dairy Industry’s Important Contributions to State

“Vermont Dairy Delivers” report brings today’s dairy farmers and processors impacts into view 

April 17, 2025 | Montpelier, VT - What does the dairy industry mean to Vermont?  The Vermont Agency of Agriculture, Food and Markets (VAAFM) is pleased to introduce a new report that helps answer that question. 

The report, entitled “Vermont Dairy Delivers”, identifies the annual economic impact of Vermont’s dairy industry as $5.4 billion dollars, growing from $2.6 billion ten years ago.  This is just one data point among many in the new report, showing how dairy has evolved and sustained itself, through the hard work of our state’s dairy farmers, the producers and processors that provide and create great nutritious dairy products, and the thousands of employees keeping our working lands productive and vital. 

Other insights from the report include: 

• 73% of Vermont dairy farms are small (under 200 cows)
• 52% of Vermont farmland is dedicated to dairy and dairy crops
• 7,349 dairy goats now populate 33 Vermont farms
• $3.6 billion annual revenue from milk, yogurt, butter and cheese sales
• 63% of all fluid milk production in New England comes from Vermont
• 73,000 tons of methane captured via the Cow Power Program 

The new report reflects that Americans’ appetite for dairy products has increased. According to USDA’s Economic Research Service, dairy consumption reached record levels in 2023 when the average American consumed 661 pounds of dairy products. That is up more than 40 pounds from the prior decade, and the highest rate of consumption in the United States since the late 1950s.  This trend is reflected in Vermont’s dairy economy. A decade ago, Vermont had 95 processors; in 2023 Vermont had 158 dairy processors—gaining 63 processors in ten years. More are on the way. Vermont is now exporting dairy products to Canada, Europe, Australia, and other people around the world.

“Vermont's farmers work hard, and we are grateful for the contributions of all those who support dairy,” said Governor Phil Scott.  “It's my hope this report will give Vermonters a better understanding of our dairy industry. Vermont's agriculture and working lands are not only a key part of Vermont's economy, but also its identity.”  

Accompanying that growth is a broad commitment of dairy farmers to the stewardship of the land and environment.  Ten years ago, Vermont’s farmers renewed their commitment to complying with new environmental regulations. This report reflects that those investments are working. Required agricultural practices that were put in place up to ten years ago have earned the Vermont dairy sector the distinction of being the number one catalyst for improving water quality in Vermont. It is clear that Vermont farmers are dedicated to environmental quality, first-class production facilities, care for people, animals, the land, and premium products—even while navigating a world pandemic and two major floods in the Green Mountains. 

“We are grateful for all the contributions of our farmers and all those who support dairy,” said Anson Tebbetts, Vermont’s Secretary of Agriculture. “This report tells the story: the work is rugged but rewarding. Our suppliers, our fertilizer and feed companies, our veterinarians, our truck drivers, our dairy processors, and all those who support a working landscape are vital to Vermont’s farm economy.” 

The report was commissioned by the Vermont Dairy Promotion Council, and the research was compiled by the University of Vermont Food Systems Research Center.