High Milk Production Meets a Changing Cattle Market

ZISK
12 hours ago
1 min read

The USDA is set to release the February Milk Production data later this week. If on trend with 2025 and the first numbers posted from January’s Milk Production, most are expecting another big number, if not continued growth in gallons of production.

High milk production has stressed markets despite efforts to increase value added products. Increased consumer demand here in the United States of some of these products such as protein products and ready-made dairy products has helped. Also, more exports of fluid milk and milk products to countries worldwide has lessened the blow of increased production, however the overload of production hasn’t been an easy hurdle to surpass.

Last week, the USDA released the monthly WASDE report. As expected, milk production was raised from last month, projecting February and March to be 3 billion pounds over the respective month in 2025, which was 5.6 billion pounds over the 2024 data. The balance sheet was not all doom and gloom though, Exports for Fat-Basis were projected to reach 18 billion pounds here in March of 2026. That is an increase of 500 million from the February projections for 2026, 1.3 billion pounds over March of 2025, and an astounding 6.2 billion pounds over 2024.

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