ARLINGTON, VA – After months of decline, U.S. milk production is increasing again to cash in on record-high dairy export demand.
According to the National Milk Producers Federation (NMPF), after months of uncertainty about the direction of U.S. milk production, numbers now indicate the trend is clearly toward growth, as USDA’s August milk production report indicates an increase of 1.5 percent over the same time last year.
USDA has increased its milk price forecasts for the next two years, and butter prices are still increasing.
What rising production growth means for milk prices is somewhat unclear. At the same time, margins under the Dairy Margin Coverage program have returned to payment-triggering levels for farmers enrolled in maximum coverage, and robust domestic consumer demand and market signals imply a floor to the price decline.
(SOURCE: All Ag News)