News

Cheese and butter price increases supporting more milk production

The USDA expects milk production to remain unchanged for the rest of this year and increase in 2023 because of higher output-per-cow and more cows.

In its December supply and demand report, USDA increased butter and cheese prices because demand strength while whey and nonfat dry milk prices are unchanged.  Next year, the agency expects butter and cheese prices to increase because of continued demand, but nonfat dry milk and whey prices to decline because of global markets.

This year, USDA is forecasting Class III and Class IV prices to increase because of better product prices.  The 2023 Class III priced was raised because of higher cheese prices more than offsetting whey prices, while the Class IV price was reduced to reflect the lower nonfat dry milk price.

The 2022 all milk price forecast was raised 15 cents to $25.15 per hundredweight and 2023 price increased 10 cents to $22.70.