USDA report reveals 0.7% dip in U.S. milk production amidst contraction in milking herd
Source: The DairyNews
The November USDA report indicates a 0.7% decline in U.S. milk production during the third quarter of 2023 compared to the same period in the previous year.
The reduction is attributed to a decrease of 41,000 milk cows from the prior quarter and 33,000 fewer than the same period in 2022. Although the all-milk price in September saw a $1.30 increase from the previous month, reaching $21 per cwt., it remained $3.10 lower than September 2022.
The report brings some relief as dairy farmers experienced lower feed costs in September compared to the same month last year, resulting in an improved milk-feed ratio. However, the USDA Dairy Margin Coverage program reveals a $8.44 cwt milk margin above feed costs in September 2023, marking a $0.18 cwt decline from September 2022. Looking ahead, the U.S. milking herd is projected to continue contracting in early 2024, with an expected expansion later in the year.
However, the number of milk cows is forecasted to be 10,000 less than the previous estimate, resulting in a 0.4 billion pound reduction in milk production. The USDA ERS estimates Class III milk price at $17.70 per cwt., Class IV at $18.85 per cwt., and an all-milk price of $20.80 per cwt. for 2024.
The report brings some relief as dairy farmers experienced lower feed costs in September compared to the same month last year, resulting in an improved milk-feed ratio. However, the USDA Dairy Margin Coverage program reveals a $8.44 cwt milk margin above feed costs in September 2023, marking a $0.18 cwt decline from September 2022. Looking ahead, the U.S. milking herd is projected to continue contracting in early 2024, with an expected expansion later in the year.
However, the number of milk cows is forecasted to be 10,000 less than the previous estimate, resulting in a 0.4 billion pound reduction in milk production. The USDA ERS estimates Class III milk price at $17.70 per cwt., Class IV at $18.85 per cwt., and an all-milk price of $20.80 per cwt. for 2024.
