Vermont is New England’s dairy powerhouse

By Guy Page on April 27, 2026 • ( Leave a comment )

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# of farms declines with consolidation

By the Journal-Opinion

Some 27,000 jobs across New England are supported by the dairy industry, according to a new report from the Northeast Dairy Business Innovation Center. New England dairy contributes $9.7 billion to the region’s economy.

Nearly half of New England’s dairy farms are in Vermont. About one-tenth are in New Hampshire.

Overall, there are 925 dairy farms in the region, some 500 fewer than in 2017. Vermont saw the steepest drop at 40% followed by Maine at 36%.

Nevertheless, those two states “anchor” the industry in New England with the majority of dairy farms and dairy plants concentrated there.

And yet, average milk sales per farm in New England increased by 52% between 2017 and 2025.

“The dairy farm market is characterized by consolidation,” the report states. “While the number of dairy farms is rapidly declining in nearly all corners of the nation, milk output has largely been maintained as productivity gains, such as larger herds, feed optimization, genetic improvements, and precision and automation technologies, lift yield per cow. Small and mid-sized operations face extreme margin pressure from volatile costs for inputs like feed and energy, labor challenges, and intensive capital needs.”

According to the 122-page report’s executive summary, processing is “critical” to dairy future.

“Processing capacity shapes what dairy products are made, where they are sold, and how much value stays in the region. Strengthening and modernizing processing infrastructure is essential to maintaining long-term stability and competitiveness.”

It also finds diversification into value-added products and new markets will improve success.