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Growth of American milk pool stagnates

23 November 2022 - Wouter Baan

The US milk supply still showed growth figures in October compared to a year ago. However, the increase is clearly stagnating.

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US dairy farmers produced 8,18 million tons of milk last month. An increase of 1,4% compared to the same month last year. This means that the growth, which has been visible since July, shows a leveling off trend. In September and August the increase was 1,5% and 1,8% respectively. This leveling off trend is caused by an almost unchanged number of cows in recent months.

High slaughter figures
American dairy farmers may have wanted to take advantage of the high prices for beef cattle in the fall. In the third week of October, 85.000 cattle were slaughtered in the US, the highest number in more than a decade. This unexpected peak is estimated by analysts as temporary.

Milk prices in the United States are now fairly stable after the correction in the third quarter. Converted prices are paid at €55 per 100 kilos. These prices probably motivate dairy farmers to continue milking vigorously. The effect of this should become apparent in the coming months. Nevertheless, analysts expect that the growing milk supply will remain in line with the trend that is now visible. This makes the increase apparently manageable for processors, especially because dairy stocks in the United States are low. 

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