News Milk supply
US milk production up, milk price down
In July, US milk production was just above last year's level. This can be seen as a break in the trend, given that production has lagged behind in the previous months. The milk price in the United States has now passed its peak.
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In July, US dairy farmers produced 8,2 million tons of milk. This is an increase of 0,3% compared to the same month in 2021, according to figures from the Department of Agriculture in Washington (USDA). Compared to last year, the US had fewer dairy cows, but production per cow is higher.
The increase is mainly due to extra supply from the large dairy states. For example, dairy farmers in California increased production by 2,2%. In Texas, supply even increased by 6%. The increase is dampened by declining production figures in states such as Michigan and Minnesota.
High milk price on the decline
The slight increase in production is probably related to the sharply increased milk prices in recent months. In combination with falling grain prices, this produces positive margins. Converted, American dairy farmers receive milk prices that are well above €50 per 100 kilos. However, there has been a downward trend again since July and the expectation is that this trend will continue.
Analysts attribute the decline to skyrocketing inflation that is eroding the purchasing power of American citizens. It is expected that Americans will therefore visit restaurants less often. Something that determines dairy consumption on the internal market. The dairy export figures are good. In June, the export volume was 9% above last year's level, which also included a record export volume.