News Milk
Melkplas United States falls after oversupply
Milk production in the United States (US) was lower last July than in the same month last year. It's been exactly one year since milk production by US dairy farms fell. Since July 2022, the milk supply has been higher every month than the year before. Many dairy processors and dairy farmers will not regret the drop in production.
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The United States Department of Agriculture (USDA) published the milk supply for the month of July yesterday (Monday, August 21). This amounts to 24 million tons in the 8,3 most important milk-producing states in the US. That is a decrease of 0,6% compared to July 2022. An American cow produced an average of 928,5 kilos in July, which is 5,8 kilos less than in the same month in 2022. The dairy herd in the 24 states amounted to 8,92 million animals. That is more or less the same amount than in July 2022, but 7.000 dairy cows less than in June of this year.
In that perspective, the dairy herd figures for the entire United States, i.e. for all 50 states, stand out. The total dairy herd in July will be 9,4 million cows, 13.000 animals less than in July 2022. But 'only' 3.000 cows less than in June 2023. In short, this means that in recent months the dairy herd in the less important dairy states in the US has fallen relatively more than in the 24 largest. But compared to June, dairy farmers in the less important states have actually kept more cows.
Risers and fallers by state
The differences in states are also striking. In California, the largest milk producer in the US, milk supply fell by 1,3% in July compared to July 2022. In Wisconsin, the Midwest state that presents itself as America's dairy country, milk production increased by 1,2%. . Milk production also increased in other major dairy states such as Michigan, New York and Idaho by 3,9%, 3,6% and 2,3% respectively. In Texas, on the other hand, milk supplies fell by 3%, a picture that was also seen in many smaller dairy states.
The dairy sector in the United States was characterized by a crisis in the spring and the first half of the summer overproduction of milk, which meant that the milk processors could barely cope with the supply. Dairy farmers in Wisconsin, for example, were therefore sometimes forced to dump some of the milk into the sewer. The seasonal decline in milk supply from June came none too soon for the dairy sector. Nevertheless, dairy farming is faced with relatively low milk prices, which, according to analysts, are unprofitable for many dairy farms. In that respect, the correction in the dairy herd can be explained, although the question remains whether it is sufficient to achieve more balance on the American milk market. The fact that milk production in Wisconsin increased in July despite all the problems is remarkable.