USDA Projects Higher All-Milk Prices and Increased Production for 2024
In its May World Agricultural Supply and Demand Estimates (WASDE) report, the USDA has increased its milk production forecast for 2024, citing a rise in the number of dairy cows and faster growth in output per cow.
The current estimate for 2024 milk production is 227.3 billion pounds, an increase of 1 billion pounds from the previous month and 900 million pounds higher than the 2023 total of 226.4 billion pounds.
The USDA also updated its 2025 milk production forecast, projecting a total of 229.3 billion pounds, or a 0.9% increase if realized, due to higher milk per cow predictions and an expanding herd.
Commercial exports are expected to grow for both fat and skim-solids, while imports in these categories are forecasted to decrease as domestic use rises. Butter price forecasts for 2024 edged up by 1 cent to $2.935 per pound, and cheese prices saw a notable increase to $1.695 per pound, up 7.5 cents.
With the rise in cheese prices, the Class III milk price forecast was raised to $16.75 per cwt., an increase of 55 cents from last month's prediction. Conversely, Class IV prices dropped by 15 cents to $20.25 per cwt., though this remains higher than 2023’s Class IV price of $19.12.
The all-milk price forecast for 2024 has been adjusted to $21.20 per cwt., an increase of 30 cents from April and 81 cents from 2023. Looking ahead, the all-milk price forecast for 2025 stands at $20.90 per cwt.
The USDA also updated its 2025 milk production forecast, projecting a total of 229.3 billion pounds, or a 0.9% increase if realized, due to higher milk per cow predictions and an expanding herd.
Commercial exports are expected to grow for both fat and skim-solids, while imports in these categories are forecasted to decrease as domestic use rises. Butter price forecasts for 2024 edged up by 1 cent to $2.935 per pound, and cheese prices saw a notable increase to $1.695 per pound, up 7.5 cents.
With the rise in cheese prices, the Class III milk price forecast was raised to $16.75 per cwt., an increase of 55 cents from last month's prediction. Conversely, Class IV prices dropped by 15 cents to $20.25 per cwt., though this remains higher than 2023’s Class IV price of $19.12.
The all-milk price forecast for 2024 has been adjusted to $21.20 per cwt., an increase of 30 cents from April and 81 cents from 2023. Looking ahead, the all-milk price forecast for 2025 stands at $20.90 per cwt.
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