Milk Production Expected To Increase In 2019

The latest USDA numbers on milk production are in.  July production came in at 18.4 billion pounds, up 0.4% from July 2017.  The dairy herd shrank slightly compared to a year ago, with 8,000 fewer head.  However, milk per cow last month averaged 1,953 pounds, ten pounds more than July of last year.

USDA Chief economist Rob Johansson is forecasting this year's total national milk output at 217.9 billion pounds, roughly 1% more than last year.  As far as next year?

"220.9 billion pounds with higher herd size and milk per cow."

That's about a 1.4% increase.

Johansson said milk prices this year will average $16.20 per hundred weight, up to $16.95 next year, and with projected falling feed costs.

"Still expecting higher than 8-dollar margins for MPP program in the fourth quarter of this year, as well as all of next year."

So of course it's not likely that producers will see  margin production program payments during that time.

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