Two USDA reports this week highlighted how milk production across the country is at peak seasonal levels as inventories and herd continued to swell. We saw a further expansion in the herd of 8,000 head across all 50 states to a new record high for the national herd—and upward revisions for the prior month.
Yields were equally impressive, with 67.29 lbs of milk produced per cow per day in March, a new all-time record. The 24-state milk volume was up 2 percent vs. March 2020, bringing the cumulative tally up 1 percent increase through Q1. Last month’s statistics were also revised higher, upping production by 36 million lbs or 0.2 percent, correcting what was termed as underreporting in previous months.
Despite robust numbers, the market has been steady, moving higher in anticipation of stronger export demand and an improving economic outlook.