USDA PROJECTS LOWER DAIRY PRODUCTION, SOME HIGHER PRICES
The USDA lowered its milk production forecasts in Friday’s supply and demand report. USDA says 2023 milk production was estimated at 228.4 billion pounds in July, but their August update lowers that projection to 227.9 billion pounds.
The projected cow inventory for this year and 2024 is lower, and the expected output per cow is reduced for 2023 but unchanged for 2024.
The report raised the expected 2023 butter and cheese prices because of recent price strength. This year’s whey price forecasts were lowered. The forecast for nonfat dry milk (NDM), Class III, and Class IV is higher. The all-milk price for 2023 is up to $19.95 per cwt.
August 11, 2023
By Larry Lee