USDA Forecasts Increased Milk Production for 2025 Amid Market Adjustments
Source: The DairyNews
According to the latest USDA report, milk production in 2025 is projected to rise compared to 2024, driven by higher yields per cow and an expanding milk cow herd. Commercial exports are expected to grow for both fat and skim-solids, while imports are forecasted to decline on both fronts. Domestic use is predicted to increase, and stock levels are anticipated to be lower for both fat and skim-solids.
The Class III and Class IV milk price forecasts are lowered due to anticipated declines in prices for cheese, butter, nonfat dry milk (NDM), and whey, stemming from larger milk supplies. The all-milk price for 2025 is forecasted at $20.90 per cwt.
For 2024, the USDA has raised its milk production forecast due to an increase in dairy cows and faster growth in output per cow. Import forecasts are higher, while export projections are lower on both a fat and skim-solids basis. Domestic use is also expected to rise. Cheese prices are forecasted to increase, but whey prices are expected to decline. The butter price forecast has been raised, while the NDM price forecast is lowered. The Class III price forecast is increased as higher cheese prices offset the lower whey prices, whereas the Class IV price forecast is lower due to higher butter prices being offset by lower NDM prices. The all-milk price forecast for 2024 has been raised to $21.20 per cwt.
For 2024, the USDA has raised its milk production forecast due to an increase in dairy cows and faster growth in output per cow. Import forecasts are higher, while export projections are lower on both a fat and skim-solids basis. Domestic use is also expected to rise. Cheese prices are forecasted to increase, but whey prices are expected to decline. The butter price forecast has been raised, while the NDM price forecast is lowered. The Class III price forecast is increased as higher cheese prices offset the lower whey prices, whereas the Class IV price forecast is lower due to higher butter prices being offset by lower NDM prices. The all-milk price forecast for 2024 has been raised to $21.20 per cwt.
