The USDA’s January 2025 Cattle Inventory report revealed the lowest count of dairy heifers since 1978, totaling 3.914 million. This includes just 2.5 million heifers expected to calve into the milking herd in 2025. The heifer count is the lowest since the USDA began tracking heifers.

The decline in heifer numbers coincides with the rise of beef crossbreeding. This increases the value of non-replacement dairy cattle. As beef demand grows, prices for beef-cross calves have reached unprecedented levels. The scarcity of springing heifers has led to high prices, with Holstein springers reaching up to $4,000 per head.

Due to the limited supply, herds are only producing enough heifers to replace aging cows. The milking herd size remains stagnant at 9.35 million.

This raises concerns about whether an aging herd will affect milk production. The ongoing shortage could result in higher milk prices. Forecasts predict an all-milk price of $23.05 per hundredweight for 2025, an increase of around 50 cents from the previous year.

Read more about how the heifer shortage could impact milk production here.