The nation’s dairy herd maintained its downward trend in June, falling to the lowest level since Q1 2016. The latest milk production report showed that dairy cows declined by 15,000 head in Q2. Milk production in the largest 24-states rose fractionally, up just 0.1 percent, leaving year-to-date national production about flat from last year. Production per cow was also flat compared to June 2018.
Production numbers and yield would be expected to dip next month due the negative impact of the July heatwave. In total, milk production across the United States was down 0.1 percent in Q2 2019 vs. Q1 2019, matching the recent trend. Overall, the report was viewed as constructive to the market.