Inside Milk
US milk supply narrowly in the red
Just like in Europe, the milk supply in the United States also peaks in May. For the second time this year, American dairy producers collected less milk than in 2018.
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Milk production in the 24 most important dairy states amounted to 8,22 million tons of milk in May, according to figures from the United States Department of Agriculture (USDA). That is 0,1% less than in the same month in 2018, which indicates that the American milk supply is leveling off. In March the milk supply also turned red, but in April then another small plus followed.
Pluses in Texas and California
The medium-sized dairy states (such as Minnesota and New Mexico) in particular produced less milk in May. In the larger dairy states (such as California, Texas and New York) there is an increase in production. The number of registered dairy cows increased by 5.000 to 8,79 million cows between April and May. This has broken the downward trend that started in June last year.
The above may be a signal that American dairy farmers now have more confidence in the milk price. That is not surprising, because the price of Class III (standard milk) has been on the rise for 3 months in a row. In April the milk price was $17,70 per CWT (=50,8 kilos), which amounts to €34,72 per 100 kilos.