Wisconsin’s dairy industry is the largest sector of agriculture and accounts for nearly half of the total economic impact contributing $43.4 billion in industrial sales to the state’s economy. That’s an increase of 63.7 percent.

The study, authored by Steven Deller, a UW-Extension community development specialist and professor in the UW-Madison agricultural and applied economics department, is a follow-up to a previous study published in 2009 using 2007 data.

According to the study, despite the combined effects of the drought of 2012 and the Great Recession, agriculture remains a critical component of Wisconsin’s economy. The study highlights the overall strength of the dairy industry and the role it plays in fueling the state’s economy, particularly growing industry segments which include creamery butter and dry, condensed and evaporated dairy products. Through diverse industry segments, it is clear dairy contributes more to Wisconsin’s state economy at $43.4 billion than citrus does to Florida, $9 billion or potatoes to Idaho, $6.7 billion.

With Wisconsin’s 1.2 million cows pumping economic life throughout the state, it is clear why dairy would be the largest contributor to the state’s economy.

If you were to look at how much each Wisconsin dairy cow generates, the numbers are astounding. The average Wisconsin dairy cow generates $34,000 a year in economic activity, which is then circulated back into the community through local schools, safety services, roads, retail activities and on and on. In fact, the dairy industry fuels the state’s economy at more than $82,500 per minute.

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