USDA Holds Steady on 2024-2025 Milk Production Forecasts
Source: The DairyNews
The USDA's latest World Agriculture Supply and Demand Estimates (WASDE) report, released on June 12, maintains unchanged milk production forecasts for 2024 and 2025, with minor adjustments in cow inventories balanced by a deceleration in milk output per cow. The 2024 milk production estimate remains steady at 227.3 billion pounds, a marginal increase of 900 million pounds over the 2023 total of 226.4 billion pounds.
Reflecting recent market trends, the USDA has revised upward the price forecasts for key dairy products for 2024. Butter, cheese, and whey have seen price increases due to recent market strength, though nonfat dry milk (NDM) prices remain steady. Consequently, the Class III milk price for 2024 is now projected at $17.90 per hundredweight (cwt), with the Class IV price estimated at $20.50 per cwt. The all-milk price for 2024 is forecast to rise to $21.60 per cwt.
Looking ahead to 2025, the USDA anticipates a slight increase in milk production to 229.3 billion pounds, 2 billion pounds more than the forecast for 2024. The demand for dairy products is expected to remain robust into 2025, prompting increases in the projected prices for butter, cheese, and whey.
The NDM price forecast for 2025, however, remains unchanged. The forecasted Class III milk price is slightly lower at $17.70 per cwt, while the Class IV price is set at $20.10 per cwt. The all-milk price for 2025 is predicted at $21.50 per cwt, indicating sustained profitability in the dairy sector amidst strong market demand.
Looking ahead to 2025, the USDA anticipates a slight increase in milk production to 229.3 billion pounds, 2 billion pounds more than the forecast for 2024. The demand for dairy products is expected to remain robust into 2025, prompting increases in the projected prices for butter, cheese, and whey.
The NDM price forecast for 2025, however, remains unchanged. The forecasted Class III milk price is slightly lower at $17.70 per cwt, while the Class IV price is set at $20.10 per cwt. The all-milk price for 2025 is predicted at $21.50 per cwt, indicating sustained profitability in the dairy sector amidst strong market demand.
