Dairy Output Increases While Number Of Operations Drop

The number of dairy operations may be shrinking here in the U.S., but milk output is increasing.  This year's production will top 2018  by about a billion pounds and USDA analysts forecasting for 2020 an increase in production of almost 4 billion pounds, 224 billion pounds.

"Mostly reflecting continued increase in milk per cow," said acting USDA Outlook Chairman, Mark Jekanowski.  He added higher milk prices have, of course, encouraged higher production this year USDA forecasting an average all milk price just over $18.60 a hundred weight.  And that's $2 more than 2018.

"For 2020 we expect prices to continue to increase a bit reaching $18.85 cwt," Jekanowski said.

He added prices being supported mainly by, strong demand for cheese good export demand for non-fat dry milk.  Once at those prices Jekanowski said dairy margins will likely be such that they will not trigger payments producers under the Margin Protection Coverage Program.

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