USDA reduces milk production estimate
Source: dairynews.today
The USDA has trimmed its milk production forecast for 2025, citing lower per cow output and international market trends.
The USDA has revised its projection for milk production in 2025 down to 226.2 billion pounds, a decrease of 700 million pounds from the February estimate. This adjustment is attributed to a reduction in per cow output. Consequently, the average all milk price is anticipated to be $21.60 per hundredweight, marking a $1 decrease from last month. This forecast is influenced by falling exports on both fat and skim milk bases, while domestic usage remains consistent.
In 2024, the average all milk price was recorded at $22.61 per hundredweight. Notably, Class III prices are projected to be $17.95 per hundredweight, reflecting a decline of $1.15, driven by reductions in cheese and whey prices. Class IV prices are expected to average $18.80, down by $.90, attributed to drops in butter and nonfat dry milk prices. The previous year's Class III and Class IV prices averaged $18.89 and $20.75, respectively.
The USDA plans to release its next set of supply and demand figures on April 10th.
