USDA: Milk Production Up Prices Down Again
It's becoming an unpleasant theme for the year, U.S. dairy operators could see a further squeeze on their margins as 2023 continues. USDA Outlook Board Chairman Mark Jekanowski says once again, they’ve increased production projections while trimming milk prices.
So, why the latest change?
“Cow numbers, dairy cow numbers, are higher than the than we had been forecasting," Jekanowski pointed out. "So, we accepted that revision in dairy cow numbers and that incorporates into a 200-million-pound increase in milk supply. U.S. milk supply year over year that would be up 2.1 billion pounds.”
That comes to just under a 1% increase. Which means the 2023 all milk price forecast has been trimmed.
“$0.25 cwt. So it's currently forecast at $20.45 cwt," Jekanowski said, which comes out to a 20% decrease.
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