News

Declining milk production aiding prices, product production mixed

USDA is again lowering its expectations for milk production in 2022 as farmers milk fewer cows and milk per cow slows.

In its March supply and demand report, USDA raised butter, cheese, nonfat dry milk, and whey prices for 2022 because of current prices, reduced production, and continued demand strength.  The Class III and Class IV prices were raised because of higher product prices. 

The 2022 all milk price forecast was raised $1.50 to $25.05.

Separately, dairy product production was mixed during January as plants adjust to more normal demand cycles and additional cheese processing is added to the production mix.

Total cheese production was 1.17 billion pounds, up slightly on the year and from the prior month. Italian cheese production was up nearly two percent on the year and slightly on the month while American cheese was up one percent on the year and nearly five percent higher than December.

Butter production totaled 195 million pounds, down nearly seven percent from the prior year while up 8.5 percent from the month before.

Nonfat dry milk was down nearly 14 percent from 2020 and skim milk powder was up nearly 21 percent.  Dry whey production more than four percent lower while lactose was up more than seven percent from the previous year.