USDA has Revised its Forecasts for the U.S. Dairy Sector for Both 2024 and 2025
Source: DairyNews.today
In its latest August report, the USDA has revised its forecasts for the U.S. dairy sector for both 2024 and 2025, reflecting adjustments based on recent inventory and production data.
2024 Dairy Production Forecasts:
Average Number of Milk Cows: The forecast has been lowered to 9.340 million head.
Milk Per Cow: The expected yield is revised downward to 24,230 pounds per cow.
Total Milk Production: The overall production forecast is now set at 226.3 billion pounds.
These downward revisions align with recent trends observed in inventory and production data, indicating a slight tightening in the dairy market.
Price Forecast Adjustments:
Cheddar Cheese, Nonfat Dry Milk (NDM), and Dry Whey Prices: The wholesale price forecasts for these products have been revised upward, reflecting recent price trends in the market.
Butter Price: Conversely, the forecast for butter prices has been lowered.
All-Milk Price:
2024 Forecast: The all-milk price is now expected to average $22.30 per hundredweight (cwt), a modest increase of $0.05 from previous projections.
2025 Dairy Market Outlook:
Milk Production: The 2025 forecast has also been revised downward due to expectations of a reduced number of milking cows and lower milk yield per cow.
Wholesale Prices: The USDA has raised the price forecasts for the main dairy products in 2025, indicating anticipated market tightening.
All-Milk Price: The forecast for 2025 has been increased to $22.75 per cwt, up $0.25 from the previous month’s estimate.
These adjustments reflect a cautious outlook for the dairy sector, with moderate price increases expected in response to supply constraints. The USDA's revisions suggest that dairy producers may face tighter margins but could benefit from slightly higher milk prices moving forward.
Average Number of Milk Cows: The forecast has been lowered to 9.340 million head.
Milk Per Cow: The expected yield is revised downward to 24,230 pounds per cow.
Total Milk Production: The overall production forecast is now set at 226.3 billion pounds.
These downward revisions align with recent trends observed in inventory and production data, indicating a slight tightening in the dairy market.
Price Forecast Adjustments:
Cheddar Cheese, Nonfat Dry Milk (NDM), and Dry Whey Prices: The wholesale price forecasts for these products have been revised upward, reflecting recent price trends in the market.
Butter Price: Conversely, the forecast for butter prices has been lowered.
All-Milk Price:
2024 Forecast: The all-milk price is now expected to average $22.30 per hundredweight (cwt), a modest increase of $0.05 from previous projections.
2025 Dairy Market Outlook:
Milk Production: The 2025 forecast has also been revised downward due to expectations of a reduced number of milking cows and lower milk yield per cow.
Wholesale Prices: The USDA has raised the price forecasts for the main dairy products in 2025, indicating anticipated market tightening.
All-Milk Price: The forecast for 2025 has been increased to $22.75 per cwt, up $0.25 from the previous month’s estimate.
These adjustments reflect a cautious outlook for the dairy sector, with moderate price increases expected in response to supply constraints. The USDA's revisions suggest that dairy producers may face tighter margins but could benefit from slightly higher milk prices moving forward.
