Recent reports about the condition of the Wisconsin dairy industry have not been all that good. According to the National Agricultural Statistics Service (NASS), dairy cow numbers in Wisconsin have been steadily dropping over the last few years while total milk production has, at best, held steady or declined modestly. This stability in total milk production, in the face of falling cow numbers, is due largely to increases in the average milk production of those cows that remain in the herd. At first glance one might conclude that the recent trends in the Wisconsin dairy industry are an indication that the state's dairy is destined to shrink. Before one concludes this however, one needs to consider some recent changes that have been going on within the industry which may be a sign that Wisconsin dairy industry may be rebounding and beginning to grow again.