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Is milk production finally turning higher?

The National Milk Producers Federation’s chief economist says the latest milk production report might indicate farmers are starting to rebuild herd capacity. 

Peter Vitaliano tells Brownfield milk production hasn’t grown in the past year and that’s uncommon.

“It was almost as if producers just collectively had said, ‘We’ve spent enough time growing in our production in the face of tough price conditions, we’re just done with that,’” he says.

He says high feed costs, inputs, labor, a lack of replacement heifers, and construction materials have kept a ceiling on expansions.

“Despite all of these cost challenges, milk prices had reached record high levels as a result of that tight supply situation with both domestic and international demand staying pretty strong,” he shares.

USDA’s August report increased milk production 1.6 percent. Vitaliano says production is up in nearly all major dairy states. 

He tells Brownfield next month’s report should be telling if a shift is underway.