The T.C. Jacoby Weekly Market Report Week Ending December 1, 2023
U.S. milk production slumped deeper into the red in October as poor margins and tight heifer supplies trimmed the dairy herd. Production grew at a healthy clip in the Mideast, and the Midwest and Northeast contributed moderate growth. But output was down hard in the Northwest, Southwest, and California.
U.S. milk production slumped deeper into the red in October as poor margins and tight heifer supplies trimmed the dairy herd. Milk output totaled 18.71 billion pounds, 0.5% less than in October 2022. Production grew at a healthy clip in the Mideast, and the Midwest and Northeast contributed moderate growth. But output was down hard in the Northwest, Southwest, and California.
The pace of dairy sellouts slowed to a crawl this fall, reducing the volume of milk cows and heifers available at local auctions. Dairy producers had to look elsewhere for replacements, and the sudden lack of heifers for sale forced producers to clamp down on cull rates. Over the past 10 weeks, dairy cow slaughter ran about 8% below the five-year average. Nonetheless, the milk-cow herd shrunk once again in October, falling 6,000 head to 9.37 million. There were 42,000 fewer cows in U.S. milk parlors in October than there were a year ago.
December 5, 2023
dairybusiness.com
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