USDA: Strong Milk Prices Expected Over Next Two Years

Lower production, higher prices, that’s the summary of USDA's August Dairy Forecast.

“We reduced our production forecast for both 2024 and 2025. We still expect year-over-year growth," said World Agricultural Outlook Board chairman Mark Jekanowski.  "So, 2025 production will exceed this year's production by about 1.8 billion pounds."

Jekanowski added tighter cow inventories, restraints on some Heffer supply, price and reduction of milk per cow due to heat stress are behind month over month reductions in both years.  When it comes to prices, the butter price forecast was reduced by a penny a pound to $2.99.

“Other than butter for 2024, all of our other main component dairy prices were raised this month.  And the class prices were all raised as well.  And all milk price reflects the class prices. So, our 2024 all milk price was raised by $0.05 cwt, now forecast at $22.30 cwt.  And we expect the strength to continue into the next calendar year in 2025. So, where we have the all milk price at $22.75 cwt and that would be up 45 cents year-over-year.”

Once again, World Agricultural Outlook Board chair Mark Jekanowski.

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