Inside Milk
Americans are milking hard
The American milk supply in December was considerably higher than last year. Motivated by excellent milk prices, dairy farmers in the country keep more cows.
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In December, US milk supplies amounted to 8,2 million tons, an increase of 3,2% compared to the same month in 2019. For the entire fourth quarter, milk supplies were 3% higher compared to last year, according to figures from the US Department of Agriculture (USDA).
Higher animal numbers
The increasing production is due to higher animal numbers. With 9,43 million dairy cows in December, this number was almost 100.000 higher than last year. In addition, milk production per cow is still increasing in the US.
Looking at all of 2020, US milk supplies amounted to 101 million tonnes. This is a record level and 2,2% higher than last year. Milk production has been on an upward trend for years. For this year, the USDA estimates growth of 1,6% to 102 million tons, which means that growth is leveling off somewhat compared to recent years.
Excellent milk prices
The higher animal numbers are driven by relatively good milk prices, despite the corona crisis. The average of class 2, 3 and 4 milk prices in November was $21,20 per CWT. Converted, this amounts to just €40 per 100 kilos. In the US, the dairy market is supported by the government's purchasing program.
In early January, the Trump administration announced the fifth round of the Farmers to Families Food Box program. Dairy exports are also running smoothly, partly thanks to the weaker dollar. Record volumes have been exported several times in recent months.