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Unimpressive USDA Milk Production Report Spells Surplus in More Ways Than One


After hearing reports of milk being dumped due to the surplus of milk on the market, the recent USDA Milk Production report wasn’t surprising. The May report documented a 0.6% increase over a year prior. Cow numbers also followed suit, up 24,000 head from 2022, but unchanged from the previous month. Phil Plourd, head of market intelligence at Ever.Ag Insights, shares that’s partially due to slowed on-farm liquidations and slaughter rates.


“If you think back to May, the weather was pretty good everywhere. That certainly helped keep the numbers above water. But in addition, we still aren’t seeing major liquidation,” Plourd says. “Cow numbers didn’t change from month-to-month. Until we see slaughter rates really accelerate and cow numbers move consistently lower, the road to less milk is not getting shorter.”


Idaho led the way with a 44 million lb. gain in milk production. Other states showed growth, like New York (up 28 million lbs.) and South Dakota and Minnesota (both up 22 million lbs.). While both California and New Mexico showed a decline of 24 million lbs.


By KAREN BOHNERT

June 22, 2023

dairyherd.com

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