According to World Agricultural Outlook Board Chairman, Mark Jekanowski, American dairy producers have increased milk per cow. And in response, the USDA has increased milk production forecasts for both the current year 2020 and for year 2021. In addition, he notes butter remain strong in the export market.

"We also see a lot of strength in solid based exports and we're talking about all of your standard products such as skim milk powder, etcetera."

Despite the demand, market conditions have resulted in a consistent reduction in product and class prices for dairy.

"All-milk price currently forecast 20 cents cwt lower than we anticipated last month to come out to $17.75 cwt for this year. For 2021, we reduced our all-milk price forecast by 5 cents per hundred weight down to $17 per hundred weight year over year that would be a 75 cents per hundred weight production," Jekanowski continued.

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