USDA Lowers Milk Production Again

Once again, the USDA has reduced its month over month milk production forecast for 2021-22.

"For 2021 that highly reflects lower cow inventories at this point," said World Agricultural Outlook Board Chair, Mark Jekanowski. "But for 2022 we expect those lower inventories, lower cow numbers to continue.  Along with a slower rate of growth in milk per cow."

Yet, year-over-year production, he noted, should rise 1.4 billion pounds. December also meant tightening of dairy trade data.

"Increased imports of cheese and butter fat products.  Lower exports, on the other hand, of butter fat products for 2021; really modest changes for 2022," Jekanowski continued. "And then on the export side, on a skim solids basis, the main product that's worth noting is lactose, where we're seeing some strength in export demand, and that's what led us to increase our export forecast for both 2021 and 2022."

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