This is the second in a series of brief reports that document the current state of the Wisconsin dairy industry and evaluate factors that will influence its evolution. In this installment, we discuss changes in cow numbers and milk production per cow in Wisconsin and compare these changes with what has occurred in other regions. We review what happened to alter relative regional growth rates and speculate on whether these conditions will continue. We then examine trends within the state with respect to the structure of the production sector and the emergence of new production systems.