This year’s record-shattering milk prices have marched on a slow retreat since their early summer peak, but values for springing Holstein heifers are holding about the same month-over-month. In his monthly Dairy Situation and Outlook Report, University of Wisconsin Professor Emeritus Bob Cropp said September Class III milk prices may net out below $20.00/cwt. USDA has dialed back its average price estimates for all of 2022. Class III was estimated at $21.65 but has been lowered to $19.70. Class IV was forecast to average $24.45, but has been cut to $20.85. Still, these are relatively high milk prices, which normally would drive production increases. But Cropp said these are not “normal” times, and the factors that could dampen herd growth are high feed and input prices; labor shortages; and tight availability of replacement heifers.
October 7, 2022