On Jul. 20, USDA released its July milk production report, summarizing dairy statistics through the end of June or first half of 2023. In the month of June, dairy farmers culled 16,000 head from the total domestic herd and essentially wiped out any gains in heifers for the year. A combination of factors likely led to higher slaughter rates, including depressed dairy product prices compressing margins, and the flush being over, bringing lower productivity and severe heat that also trimmed farm profits.  

Yield also declined last month, which was expected as the flush has passed, and productivity normally declines from April through October. Yield per cow dropped a whopping 1 lb of milk per cow per day during June.  

It is very likely that cow numbers will continue to fall, and that coupled with falling yields, will see total milk output fall below year-ago levels. 

The full version of this commentary appeared on our IQ platform Jul. 20, 2023. Further information, statistics, and pricing for the dairy market are available to IQ subscribers. Learn more about becoming a subscriber.

Source: 123rf.com
Posted by: Information Services
Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.