Mailbox milk prices reached a new record
It turns out 2022 was a year for the dairy record books as mailbox milk prices posted a record $24.64 per hundredweight (cwt.). That value was 60 cents higher than the previous $24.04 watermark set in 2014.
When compared to just one year ago, mailbox prices were up $6.95 per cwt. when contrasted to the 2021 average of $17.69. As a result, total receipts for dairy products and milk in the United States were up from $42 billion to $58 billion. This took place primarily on the strength of higher milk prices.
The record milk prices were met by strong headwinds that included sky high feed and input costs. As new crop feed rolled into storage, the Dairy Margin Coverage Program revealed that corn had climbed 29%, soybean meal jumped 44%, and blended alfalfa price spiked 51% when comparing October 2022 to October 2021. For those growing their feed, fertilizer, fuel, and oil leapt by over 50%. Then there’s rising interest rates and the escalating cost of borrowing money.
April 3, 2023