Milk Output Climbs as Prices Slip, Margins Narrow

ZISK
7 days ago
1 min read

NASHVILLE, TENN. (RFD-TV) — U.S. milk production surged over the summer, climbing 3.6 percent year-over-year during June through August, while milkfat output jumped 5.3 percent, according to the latest Dairy Market Report from the National Milk Producers Federation.

Dairy cow numbers rose to 9.5 million head, and per-cow output averaged 6,153 pounds for the period — reflecting both strong productivity and rising milkfat composition, now averaging 4.2 percent.

Despite record-high production, fluid milk sales fell by four percent in August from a year earlier and 1.7 percent for the quarter, underscoring weak consumer demand. The all-milk price averaged $20.90 per hundredweight, modestly higher than July, while feed costs dropped enough to lift the Dairy Margin Coverage (DMC) margin to $11.52 per hundredweight. Still, retail dairy inflation remains mild — up just 0.7 percent from last year — compared with three percent overall food inflation.

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