Smaller dairy herd helping increase prices
USDA is lowering its expectations for milk production in 2022 as farmers milk fewer cows.
In its February supply and demand report, USDA raised butter, cheese, nonfat dry milk, and whey prices for 2022 because of current prices, reduced production, and tightening stocks. The Class III and Class IV prices were raised because of higher product prices.
The 2022 all milk price forecast was raised $0.95 to $23.55.
Dairy cattle inventories in January were reported one percent lower on the year while heifers held for replacements were down three percent.