Dairy Report: Latest Milk Production Data Reveals Surprising Growth

The latest USDA Milk Production report brought some positive news for the dairy industry, despite the challenges faced earlier this year. While milk production had been in decline for most of 2023, a recent unexpected resurgence has led to a 0.4% increase in year-over-year production. This marks a shift from earlier trends, showing that the sector is beginning to recover and adapt to current market conditions.

Dairy Report: Latest Milk Production Data Reveals Surprising Growth. Phil Plourd of http://Ever.Ag highlights that the decline in production earlier in the year was largely due to the impact of Highly Pathogenic Avian Influenza (HPAI) in California. This disease outbreak caused a significant dip in production in the state. However, outside of California, the dairy industry has seen steady growth. According to Plourd, milk production in other parts of the country has been on a healthy upward trajectory, contributing to the overall positive growth figures.

In October, milk production across the 24 major milk-producing states reached a total of 18 billion pounds. This is an impressive figure, reflecting both the resilience of the industry and the ongoing recovery. Production per cow averaged 2,013 pounds, a solid benchmark for the industry. Additionally, the total number of dairy cows in the U.S. increased to 8.92 million head, marking a rise of 21,000 cows compared to the same period last year. This increase in herd size further underscores the strength of the dairy sector, even amid earlier setbacks.

The report also emphasizes how milk production has been adjusting to supply chain dynamics and other factors influencing the dairy market. While challenges remain, this growth is seen as a positive sign for the industry’s future, particularly as it continues to recover from earlier disruptions.

In international news, China has expanded its anti-subsidy investigation into dairy imports from the European Union (EU). Originally launched in August, the investigation now includes dairy products from Denmark, France, Italy, and the Netherlands. This move follows the EU’s announcement of tariffs on Chinese-made electric vehicles (EVs), with tariffs as high as 45% taking effect at the end of last month. The EU is China’s second-largest supplier of dairy products, after New Zealand, making this a significant development for global dairy trade.

Dairy Report: Latest Milk Production Data Reveals Surprising Growth. As these market shifts unfold, the global dairy landscape remains complex, with both opportunities and challenges on the horizon. The recent growth in U.S. milk production, coupled with international trade dynamics, sets the stage for further developments in the dairy sector in the coming months.