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Global dairy markets should support U.S. prices

A USDA dairy economist says limited global milk production should support prices this year.

Micheal McConnell with the World Ag Outlook Board says milk production in the U.S. is expected to grow at a slower pace this year as Europe and New Zealand contract.

“But we’re expecting tighter global markets for dairy products, which are going to provide price support,” he says.

“And as a result, we’re expecting to see a fair amount of price competition in the upcoming year as both domestic and international users compete for products that are in relatively tighter markets.”

During the recent Agriculture Outlook Forum, McConnell projected 2024 milk prices for the year to average $20.95 per hundredweight, up 47 cents from 2023. 

McConnell is also expecting feed costs to come down and margins to improve this year.