Milk production is expected to grow despite a drop in January

A lot of numbers surrounding milk are down year over year, including production, which saw a nearly 1 percent drop in January.

USDA’s monthly report shows production in the 24 largest-producing states fell 0.9 percent, coming in at a little more than 18 billion pounds. Per cow output was down nearly 10 pounds compared to January 2022. The number of milk cows also fell by 49,000 head but per cow production for the year was up 30 pounds, and overall production is expected to grow this year.

“Overall, we see milk production projected to continue growing but at a decreasing rate from what we’ve seen in recent years. Feed prices are projected to be lower in the upcoming year, but we’re expecting tighter global markets for dairy products, which is going to provide price support and, as a result, we’re expecting to see a fair amount of price competition in the upcoming year as both domestic and international users compete for products that are in relatively tighter markets.”

When it comes to prices, several farm groups are asking for more stability. AFBF along with the National Farmers Union have asked Ag Secretary Tom Vilsack to return the “class one mover” formula to the “higher of” class three or four, just like before the 2018 Farm Bill.

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