USDA Trims Dairy Production Forecast

The USDA continues to trim expectations when it comes to the dairy sector.

"We reduced our milk production forecast for both 2021 and 2022," noted World Outlook Board Chair Mark Jekanowski. "It seems that producers are really kind of finally starting to respond to their relatively poor crop debility in that industry right now.

"So the reduced production for both 2021 and 2022 is driven by smaller cow inventories, and increased cow slaughter so our reduction size of the dairy herd and also reduced milk per cow growth. Milk per cow is going to continue to grow, but just a slower rate."

Poor profitability, Jekanowski pointed out, is combining with high alfalfa prices.

"Of course still noting year-over-year milk production will continue to grow; expected to be up about 2.6 billion pounds in 2022 year-over-year. But that's much smaller increase than we had been anticipating."

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