The Economic Contribution of the Dairy Industry in Virginia
Virginia’s dairy industry plays an important role in the Commonwealth’s economy. The industry includes not only dairy cattle farming and milk production but also a closely connected network of milk processing sectors such as fluid milk, butter, cheese, ice cream, and dried or condensed milk product manufacturing.
In 2024, Virginia’s dairy industry directly employed an estimated 4,637 workers and accounted for about $4.33 billion in total industry output, $1.12 billion in value added, and $297 million in labor income. When the multiplier effects of inter-industry linkages and household spending are included, the total economic contribution of the dairy industry to Virginia’s economy is estimated at 12,299 jobs, $5.99 billion in total output, $2.06 billion in value added, and $828 million in labor income in 2024. This report examines in detail the characteristics of Virginia’s dairy industry and the contributions that the industry makes to the state economy.