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Starting a Dairy in Oregon Information for the Potential Buyer and Related Industries EM 8535 Reprinted February 1994 M. Gamroth and S. Miles Do you want to print a copy? We recommend downloading the print version (67 K). First download the free Adobe Reader, if you don't already have it. Contents The North Coast The South Coast The Willamette Valley Southern Oregon Eastern Oregon Summary This publication summarizes background information on the several dairy areas in Oregon. A prospective buyer of a dairy or dairy-related business should visit different areas before making a final decision. County agents, business people, and dairy farmers will tell you details of their particular area. (See table 1.) On January 1, 1993, Oregon had about 100,000 dairy cows over 2 years old; they will produce about 1.7 billion pounds of milk per year, valued at $220 million. Milk production is Oregon's fourth leading agricultural commodity, following beef, nursery crop production, and farm forestry. Industries serving dairy farms with equipment or by milk processing will generate an estimated $300 million this year in gross sales and services. All Grade A milk sold in western Oregon is marketed under the Pacific Northwest Federal marketing order. There are three dairy cooperatives with processing facilities and two that only pool and market milk. There are also several proprietary handlers who bottle and sell under brand names. Milking systems are generally modern, with the herringbone parlor (or some variation) predominant. Free stall barns for housing are most common. Several organizations that serve dairy farmers are: Oregon Dairy Farmers Association serves through informational programs and legislative action. Oregon Dairy Products Commission does promotional work and advertising to sell milk. Oregon Dairy Council carries out nutrition education work to selected audiences. Oregon Department of Agriculture, Division of Food and Dairy, inspects dairies and analyzes milk quality on behalf of public health. Oregon is surrounded by large dairy states that will certainly influence the growth of Oregon's dairy industry. Whether the influence will cause increases or decreases will probably vary in the different areas of the state. The following sections discuss the different dairy areas in detail. top The North Coast Climate. Winter temperatures average 41°F; summer temperatures average 60°F; average annual rainfall is 80 inches. The climate is moderate, with little variation in temperature from summer to winter. Some freezing weather occurs. Heavy winter rains can cause management problems. Summers are dry, and pastures must be irrigated. Herd size. Average, 150 cows. Dairies are generally family owned and operated. Heavy winter rains cause problems with mud. Waste management and storage may limit herd size. Housing. During winter months cows are kept in free stall barns. In summer most are on pasture. Feed sources. Well-managed pasture will provide up to 200 days of feed during spring and summer months. Excess pasture grass is ensiled and stored for winter feeding. Hot weather crops such as corn for ensilage do not do well in this cool climate. Winter feeding is based on alfalfa hay and grain mixtures. The alfalfa hay is brought from eastern Oregon and Washington, and the grain is imported from out of state. Manure management. While methods vary, most store a large part of the animal waste in a covered shed to protect from the large volume of rain. The manure is used for fertilizer for pasture land. Care must be taken to protect the several rivers from pollution. Potential markets. The north coast area is close enough to Portland so that some milk goes into fluid use. However, the greatest share is processed into hard cheeses. Successful marketing of cheese has allowed a large local cooperative to pay a premium over usual manufacturing milk prices. Land values. $1,500 to $4,000 per acre. top The South Coast Climate. Winter temperatures average 42°F; average summer temperatures are 62°F; average annual rainfall is 70 inches. The climate is mild, with little extreme weather in summer or winter. Little freezing weather occurs. Heavy winter rains can cause management problems. Pastures are irrigated in the summer. Herd size. Average, 100 cows. Dairies are generally family owned and operated. Many of the smaller dairies furnish part of the operator's income, the rest being furnished by off-farm employment. Heavy winter rainfall and flooding restrict the very large herd in this area. Feed sources. Excellent pasture is available for over 200 days per year. Winter feeding relies heavily on alfalfa hay imported from eastern Oregon. In addition, some corn silage is harvested in the valleys 8 to 10 miles inland from the ocean. Nearly all dairies purchase a completely mixed grain supplement. Manure management. The predominant method of handling animal waste is by scraping alleys and storing it under cover. Manure is spread on fields when weather will allow. Potential markets. The two largest markets are a cheese plant and an ice cream mix plant. The population is too low to support a large fluid milk industry. Land values. $1,500 to $2,000 per acre. top The Willamette Valley Climate. Winter temperatures average 39°F; average summer temperature is 66°F; average annual rainfall is 38 inches. The climate is moderate, with very little extremely hot or extremely cold weather occurring. Some freezing weather does occur, so water pipes must be protected. Winter rains cause mud, and the excess water runoff can cause pollution unless proper waste management is practiced. Summers are dry, and crops are irrigated. Herd size. Average, 200 cows. There are quite a few dairies with 200 to 400 cows, but very few over 1,000. Housing. Most of the dairies are dry lot with cows on cement. Free stall barns predominate. The mild weather permits construction of buildings that are usually at least partially open. Feed sources. Many byproducts such as cannery waste from sweet corn and other vegetables are fed. Field corn is grown for silage throughout the valley. These local feeds are usually supplemented with alfalfa hay from eastern Oregon. Though some larger dairies buy commodities and mix their own feed, most dairy producers purchase a commercially mixed feed. The numerous feed sources make the Willamette Valley one of the lower feed-cost areas in Oregon. Manure management. Newer systems are the flush type, where water is used to flush the alleys in a free stall barn. Many are combined with a solids separator, where the flush water is run over a screen to remove manure solids. The liquid portion is used as fertilizer in irrigation systems. The dry, washed solids are often used as bedding. Potential markets. This area is considered a fluid milk market. Milk is sold through cooperatives and proprietary outlets. All of the milk is marketed under the Pacific Northwest Federal marketing order. Land values. $1,500 to $4,000 per acre. top Southern Oregon Climate. Winter temperatures average 37°F; average summer temperature is 71°F; average annual rainfall is 20 inches. The climate is generally moderate. However, temperatures of over 100°F do occur. The climate is dry, and crops must be irrigated. Herd size. Average, 200 cows. There are some 400-cow herds. The dry climate makes large herd management easier. Housing. Cows are kept under cover in free stall barns. Some larger operations are dry lot, but smaller dairies use irrigated pasture part of the year. Feed sources. Some irrigated pasture is available, and corn silage is used by most dairies in Jackson and Josephine Counties. Irrigated alfalfa hay is purchased from Klamath County. Dairies in Klamath County use alfalfa as their only forage. Many of the larger dairies purchase grain commodities and mix their own grain. Smaller dairies purchase mixed grain from feed companies. Manure management. New facilities are building water flush systems to clean the barn alleys. These usually include equipment to separate manure solids and a lagoon to store liquid manure. The liquid manure is used along with irrigation water. Potential markets. The market is primarily one for fluid milk for southern Oregon cities. Surplus milk is shipped to cooperatives in the Willamette Valley. In recent years, there have been periods when southern Oregon was unable to supply its fluid milk needs, and milk had to be shipped in from the Willamette Valley. Land values. $1,500 to $5,000 per acre. top Eastern Oregon Climate. Winter temperatures average 28°F; average summer temperature is 74°F; average annual rainfall is 10 inches. Eastern Oregon has more seasonal variation in temperature with summer highs reaching 100°F (average July high is + or - 92°F or above, and winter lows average 19 degrees with a few days below 0°F. Extended freezing periods do occur. All crops must be irrigated because of the low rainfall. On average there are 154 frost-free days. Herd size. Average, 100 cows. There are some large herds in the area, and weather conditions and feed supply seem ideal for them. However, most of the dairies are fairly small, often part of a larger farming operation. Housing. During winter, cows are usually housed in a free stall type barn. Because of freezing weather, barns must be built and water lines placed properly. Feed sources. Abundant supplies of alfalfa hay, corn for silage or grain, barley, beet pulp, and other byproducts are available. Dairies also use irrigated pasture on the bench land. However, beef feed lots may compete for feed supplies at times. This area is deficient in high-protein grain supplements. Manure management. The relatively small farms and dry climate make scraping manure from the alleys, storing in a stack, and spreading on fields an efficient method. Potential markets. About 2/3 of the dairies are producing Grade A milk that is shipped to Idaho for cheese, butter, and skimmed milk powder. Most new dairies will be built or remodeled to meet Grade A fluid milk standards so that the fluid milk market will be an option. Milk is marketed under the southwest Idaho/eastern Oregon Federal marketing order established in 1981. Land values. $1,000 to $1,500 per acre. Summary The future of Oregon's dairy industry appears sound. Though milk consumption per capita continues to decline, the amount of milk equivalent consumed still remains a substantial 530 pounds per person. Also, Oregon's population is expected to grow. This, plus the fact that many acres in Oregon are suitable for producing high-quality alfalfa and corn silage--excellent dairy cow feeds--should continue to support a strong dairy industry. top Prepared by Mike Gamroth, Extension dairy specialist; Stanley Miles, Extension economist, Oregon State University. Reprinted February 1994.

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