News Dairy
American milk price will pick up considerably in 2022
Thanks to good export figures and high domestic consumption figures, the American dairy market has the wind in its sails. The milk price has already taken off quite a bit in recent months and further price increases are on the horizon for 2022.
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Since the summer, the average milk price in the US (all milk) has increased by around 20% to $20,80 per CWT in November. Converted, this amounts to more than €40 per 100 kilos. The American market is supported by a leveling off milk supply. Domestic consumption is described as good, partly because restaurants are open there.
In addition, the US dairy exports has been running smoothly in recent months, despite high container prices and significant delays in American ports. In November, the export volume was 18% higher than the same month last year.
Significant increase in butter price
The Wasde report from the US Department of Agriculture (USDA), published this week, announces a further increase in the milk price in 2022. This is due to the increase in dairy product prices in the second half of last year. The expectation is that the milk price (all milk) in 2022 will average $22,60 per CWT. Such high price levels have not occurred since 2014. Expectations for dairy product prices have also been adjusted upwards compared to the penultimate estimate in December.
The price of butter in particular stands out. This is estimated at $2,30 per pound (=0,453 kilos) all year round. According to the latest forecast, the milk supply will remain the same as in 2021. This means that the growth that was visible in recent years will not continue. In addition, the butter price is supported by labor shortages that may affect production.