NASHVILLE, TN (RFD News) — Dairy farmers are producing more milk in a market that still has demand, but less room for mistakes, as consumers watch every dollar.
The June dairy market outlook says U.S. milk production grew 2.9 percent on a component basis in April. Producers added cows to capture beef-on-dairy returns, while milk per cow also improved.
That extra milk is feeding ample cheese and butter production, limiting price upside. Strong domestic sales and export growth have helped balance the market, but lower consumer confidence and weaker restaurant traffic remain concerns.
Protein markets remain firmer, with whey protein concentrate and nonfat dry milk still at historically strong levels. However, nonfat dry milk prices have begun to ease as production increases and export sales soften.
The Dairy Margin Coverage margin improved to $10.54 per hundredweight in April, but higher electricity, diesel, and inflation costs continue to pressure real farm margins.
