U.S. Sees Seventh Consecutive Monthly Drop in Milk Production
Source: The DairyNews
The latest USDA Milk Production Report indicates a consistent trend of decreasing milk production and a reduction in the number of dairy cows in the United States. For the seventh consecutive month, U.S. milk production declined, registering 19.1 billion lbs. in January—a 1.1% drop compared to the previous year.
The total number of dairy cows also decreased to 9.325 million, marking the lowest figure since November 2019.
New Mexico experienced the most significant decline in milk production, with a decrease of 97 million lbs. and 42,000 fewer cows. Texas also saw a drop of 56 million lbs. and 15,000 fewer cows, partially attributed to a large barn fire at South Fork Dairy Farm in Dimmit last April. Idaho reported a decline of 29 million lbs. and 1,000 fewer cows.
In contrast, South Dakota showed positive results, increasing by 39 million lbs. with an additional 21,000 cows. The state has witnessed a more than 70% rise in cow numbers since 2019, contributing nearly $4 billion annually to its economy. Wisconsin recorded a 25 million lbs. increase with unchanged cow numbers, while Florida saw a rise of 10 million lbs. with 6,000 additional cows.
Phil Plourd, president of Ever.Ag Insights, characterized the report as showing mediocre performance at best. He emphasized the challenging on-farm financial conditions that continue to impact overall milk output. Plourd suggested that the recent decline in cheese prices and its effect on Class III milk, combined with ongoing structural issues in specific regions, contribute to the tough conditions faced by dairy farmers. The report's indication of a substantial drop in milk production raises questions about the struggle of cheese prices to maintain gains despite the reduction in output.
The ongoing challenges in the dairy industry, coupled with economic factors and structural issues in certain regions, underscore the complexities faced by dairy farmers and the impact on milk production.
New Mexico experienced the most significant decline in milk production, with a decrease of 97 million lbs. and 42,000 fewer cows. Texas also saw a drop of 56 million lbs. and 15,000 fewer cows, partially attributed to a large barn fire at South Fork Dairy Farm in Dimmit last April. Idaho reported a decline of 29 million lbs. and 1,000 fewer cows.
In contrast, South Dakota showed positive results, increasing by 39 million lbs. with an additional 21,000 cows. The state has witnessed a more than 70% rise in cow numbers since 2019, contributing nearly $4 billion annually to its economy. Wisconsin recorded a 25 million lbs. increase with unchanged cow numbers, while Florida saw a rise of 10 million lbs. with 6,000 additional cows.
Phil Plourd, president of Ever.Ag Insights, characterized the report as showing mediocre performance at best. He emphasized the challenging on-farm financial conditions that continue to impact overall milk output. Plourd suggested that the recent decline in cheese prices and its effect on Class III milk, combined with ongoing structural issues in specific regions, contribute to the tough conditions faced by dairy farmers. The report's indication of a substantial drop in milk production raises questions about the struggle of cheese prices to maintain gains despite the reduction in output.
The ongoing challenges in the dairy industry, coupled with economic factors and structural issues in certain regions, underscore the complexities faced by dairy farmers and the impact on milk production.
