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Hmm I have some bad news for you :( As long as there's grass to eat, the speed at which cows produce milk can't really be increased. Clearing the Dung will help make sure there's grass to eat but you can't put fertiliser on it to make it grow faster and even if you could, it wouldn't affect milk production. 

Other players have noted that there aren't enough cows in the world to make milk fast enough to keep up with the demand for pies. This is something we need to balance properly in the future.

Thanks!

I noticed that there weren't enough cows too.  So, I used MS Notepad to update the save file and I changed most of the sheep into cows, since we only need enough sheep to be sheered a few hundred times to make all of the wool to create all of the clothes that would ever be needed, and I wanted more cows to produce more milk.

I will try to slow down the eating of the apple pies by the Folk with some "Wait" commands to the bots that give them the pies.  I think that if there was about 30 seconds of waiting within the Repeat loop of those bots that perhaps the milking of the cows could keep up.