News Milk supply
US milk production in the red again
Milk production in the United States also remained below last year's level in March. However, American dairy farmers are keeping more cows again, now that prices are rising.
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Milk production in the 24 largest states in the United States amounted to 8.527.536 tons in March. This is a decrease of 0,4% compared to the same month last year. Although the differences are limited, milk supply has now shown a decline for the third consecutive month. In the first quarter of this year, supply was on balance 1% below the 2021 level.
Increasing milk price
The decline is related to the shrinkage of the livestock herd. Last month, the US had 8,9 million dairy cows, a decrease of 60.000 compared to a year earlier. Compared to February, the dairy herd shows a slight increase of 15.000 cows. This is probably related to a tight supply of 'sausage cows', prompted by rising milk prices (class 3), which are now worth well into the €40 range. However, it is still too early to conclude whether the increase in dairy cows is a trend. The US Department of Agriculture recently issued that expectation.