News dairy market
Growth of milk supply in the US does not appear to be an incident
Milk production in the United States has been increasing again for a few months. This is not a short-lived increase, as the US Department of Agriculture (USDA) expects a further increase in supply figures next year. This is evident from the latest edition of the WASDE report published last week.
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The USDA expects US milk supply to reach 2023 million tons in 103,9, which would be a record volume. This year production is likely to amount to 102,4 million tons, which is slightly lower than the year before. Well, it has been since the summer an increase is visible again and that line will probably be continued into 2023, or so the USDA thinks.
Due to the increase in milk prices, American dairy farmers are keeping more cows. In combination with higher production per cow, this leads to the expected milk increase in the new year, according to the USDA.
Milk price
In addition to a higher milk supply, the USDA expects a decline in the milk price, although the decline is less significant than previously estimated. For next year, the USDA takes into account an average milk price of 19,80 per CWT (= 50,80 kilos). In historical context, that is a high price. In the first nine months of this year, the US payout price averaged 22,24 per CWT. By Dutch standards, this amounts to more than €40 per 100 kilos of milk.