USDA calls for more milk this year and next


USDA calls for more milk this year and next

USDA has raised its 2021 and 2022 milk production estimates because of increasing cow inventories this year while increases in milk per cow next year are expected to offset slight herd reductions. 

In its May supply and demand report, USDA raised cheese, nonfat dry milk, and whey prices, but lowered butter prices for 2021.  Next year, the agency expects butter prices to increase while cheese prices should decline as more milk is expected to be used for cheese production.  Nonfat dry milk and whey prices were also lowered in 2022 on anticipated global competition.   

This year USDA is forecasting Class III and Class IV prices to increase.  The 2022 Class III price was lowered because of weaker cheese and whey prices while Class IV prices were lowered because of lower nonfat dry milk prices are expected to offset higher butter prices. 

The 2021 all milk price forecast was raised 55 cents to $18.95 per hundredweight while 2022’s price was set at $18.50.