USDA expects 2022 milk production to increase then remain the same next year. The agency says output-per-cow will likely increase but cow inventories will decline.
In its November supply and demand report, USDA lowered butter, cheese, and nonfat dry milk prices because of current prices and larger milk supplies. Whey prices are unchanged. Next year, the agency expects butter prices to increase but nonfat dry milk and cheese prices to decline.
This year, USDA is forecasting Class III and Class IV prices to decline because of weaker product prices. The 2023 Class III and Class IV prices are reduced.