Good Dairy Prices Driving Production Increase

As you might expect, rising dairy prices has inspired an uptick in expected production for 2017.

USDA Outlook Board Chair Seth Meyer said they added more production to their 2017 forecasts in the most recent look, and it’s not all about price.

“Larger cow numbers and a little bit more milk per cow and that’s also supported by better returns as well too. You tend to try and ring a little bit more out of milk per cow when returns are better.

USDA is forecasting a two percent bump in production in 2017 as compared to 2016.

Meyer also noted that all classes of milk are expected to see better prices in 2017 and the all-milk price should be about $18 per hundredweight, up nearly $2 from last year.