U.S. Milk Production Expected To Increase In 2025

What are USDA’s projections for the American dairy industry in the coming year? 

“Milk production is expected to grow modestly by 0.4%,"  noted USDA dairy analyst Peyton Ferrier at this year's Ag Outlook Forum.  "That's primarily based on herd growth of 0.4% with a slight growth in yield, that’s milk per cow.  Milk components, the fats and skim solid percentages, are expected to grow. The all milk projected to be nearly unchanged at $22.60 cwt and feed costs are expected to fall in the coming year.”

When it comes to price projections for the year ahead, Ferrier said prices for U.S. butter and cheese are competitive to start 2025.

“The U.S. price is quite a bit lower than the EU price, suggesting U.S. butter is competitive on global market," he said.  "For cheese, you have the Oceania price higher than the U.S. price, suggesting the U.S. cheese is also competitive to start the year.  NDM [Nonfat Dry Milk] and whey are, however, less competitive, particularly for whey.  The U.S. price for whey was higher than EU prices, and that suggests that's not quite as competitive on the global markets.”

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