USDA projects increased milk production
Source: dairynews.today
The USDA forecasts a rise in milk production for 2025 due to larger cow inventories and improved yields, affecting dairy product prices.
The USDA's supply and demand report released on Thursday projects that milk production in 2025 will continue to increase. This expectation is based on larger cow inventories and slightly higher milk yields per cow. As a consequence, prices for butter, cheese, nonfat dry milk (NDM), and whey are adjusted downward due to recent pricing trends and the anticipated higher milk supply.
Specifically, Class III prices are impacted by lower cheese and whey prices, while Class IV prices decline due to reduced butter and nonfat dry milk prices. Consequently, the all-milk price is forecasted to decrease to $21.10 per hundredweight.
The USDA also highlights a reduction in dairy imports owing to additional duties on imported products, notably butter fats and milk protein products. Meanwhile, exports on a fat basis are seeing an uptick, primarily through increased butter exports, although other dairy exports, such as dried skim milk and whey products, are on the decline.
Specifically, Class III prices are impacted by lower cheese and whey prices, while Class IV prices decline due to reduced butter and nonfat dry milk prices. Consequently, the all-milk price is forecasted to decrease to $21.10 per hundredweight.
The USDA also highlights a reduction in dairy imports owing to additional duties on imported products, notably butter fats and milk protein products. Meanwhile, exports on a fat basis are seeing an uptick, primarily through increased butter exports, although other dairy exports, such as dried skim milk and whey products, are on the decline.
