Declining dairy cow populations in Georgia at a time when the human population is increasing lead to changes in the milk marketing system. A public policy initiative from state government to increase the number of large-scale dairies in Georgia has the potential to increase economic activity throughout the state. Total state output impact of a 1,000-head dairy farm in Georgia is $7.854 million, including $4.256 million in indirect economic activity. Although the agricultural sector receives the greatest benefits of dairy production, other sectors have significant sales and employment from milk production. Fluid milk manufacturing is an enterprise separate from production that has a state-level output impact of $9.844 million for a dairy farm with 1,000 milk cows. Results show there are economic development incentives for states to adopt public policies which can affect milk distribution and marketing in the Southeast.