Milk Production Surges Unexpectedly, USDA Reports
Source: DairyNews.today
U.S. milk production saw an unexpected uptick in recent months, reversing a year-long trend of decline. According to the latest USDA Milk Production report, output increased by 0.4% year-over-year, marking a surprising resurgence for the industry.
Regional Variations in Output
Phil Plourd of Ever.Ag attributed much of the rebound to recovery outside California, where Highly Pathogenic Avian Influenza (HPAI) had significantly disrupted production earlier in the year. "California experienced a steep drop due to HPAI, but other states posted strong growth, balancing the overall output," Plourd noted.
In October, milk production across the 24 leading dairy states reached 18 billion pounds. Average production per cow was 2,013 pounds, while the total number of dairy cows on farms increased to 8.92 million head, up 21,000 from the previous year.
International Developments Impact Dairy Trade
China is widening its anti-subsidy investigation into European Union dairy imports, now encompassing Denmark, France, Italy, and the Netherlands. Initially launched in August, the probe focuses on EU exports of cheese, milk, and cream, following the EU's implementation of tariffs of up to 45% on Chinese-made electric vehicles in October.
The EU is China's second-largest source of dairy products after New Zealand. Any resulting trade restrictions could further reshape the global dairy market.
Industry Outlook
The recent increase in U.S. milk production offers cautious optimism for the sector amid broader challenges, including international trade disputes and disease management. However, market dynamics remain unpredictable, requiring close monitoring of domestic trends and global developments.
Phil Plourd of Ever.Ag attributed much of the rebound to recovery outside California, where Highly Pathogenic Avian Influenza (HPAI) had significantly disrupted production earlier in the year. "California experienced a steep drop due to HPAI, but other states posted strong growth, balancing the overall output," Plourd noted.
In October, milk production across the 24 leading dairy states reached 18 billion pounds. Average production per cow was 2,013 pounds, while the total number of dairy cows on farms increased to 8.92 million head, up 21,000 from the previous year.
International Developments Impact Dairy Trade
China is widening its anti-subsidy investigation into European Union dairy imports, now encompassing Denmark, France, Italy, and the Netherlands. Initially launched in August, the probe focuses on EU exports of cheese, milk, and cream, following the EU's implementation of tariffs of up to 45% on Chinese-made electric vehicles in October.
The EU is China's second-largest source of dairy products after New Zealand. Any resulting trade restrictions could further reshape the global dairy market.
Industry Outlook
The recent increase in U.S. milk production offers cautious optimism for the sector amid broader challenges, including international trade disputes and disease management. However, market dynamics remain unpredictable, requiring close monitoring of domestic trends and global developments.
