The dairy industry in Texas has grown by leaps and bounds in the last six years. The dairy cow population has ballooned from 20,000 to 140,000 in the Texas Panhandle, and the number of dairies has more than tripled in that same time period.
And more cows are on the way. Officials predict the region’s dairy herd will increase by 20,000 annually for the next five years. The dairies have created jobs — one new job is added for every 100 cows — and improved the economies in numerous small towns, some of which courted the industry aggressively to help sustain their viability.
The region is attracting dairies from within and outside Texas. Land in the wide-open Panhandle is cheaper and the climate is ideal — low humidity and less rainfall — which aids swift evaporation and limits runoff into the few streams running through the region. There’s also a reliable water source — the Ogallala Aquifer — which lies deep underground. And feed for the cows can be grown on the dairies or by nearby farmers.
Panhandle dairies now produce more than 40 percent of Texas’ milk, up from about 10 percent in 2000, said Ellen Jordan, a dairy specialist with the Texas Cooperative Extension. Of the state’s Top 5 milk producing counties, three — Parmer, Deaf Smith and Castro — are in the Panhandle.
With about 660 dairies, Texas is the nation’s eighth-leading milk production state and is expected to surpass neighboring New Mexico this year. California remains the top U.S. milk producer.
Lower transportation costs are another reason for the growth. Milk producers in the region have four plants in West Texas and eastern New Mexico to choose from, including the Hilmar Cheese Co. factory in Dalhart which opened in October. Cheese plants took notice as more dairies started springing up in the Panhandle. Since 2000, many municipalities and counties in the Panhandle and South Plains aggressively recruited dairy operators and related industries.
The $190 million Hilmar plant, which has expansion plans through 2014, got the support of Amarillo, 65 miles southwest of Dalhart. Amarillo’s economic development group gave a $5 million grant to the California-based company; the Texas Enterprise Fund gave another $7.5 million and the state predicted a 600 percent return on its investment. Amarillo’s payback was forecast to be $570 million over 10 years. Hilmar guaranteed the state about 2,000 new jobs, 350 jobs at the company’s plant and an additional 1,600 from new independent milk producers and new dairies across the region, officials have said.