USDA expects declining milk prices into 2024

The USDA is forecasting reduced milk production this year and growth in 2024.  The agency is calling for larger cow inventories this year with slower milk per cow growth, then dairy cows to see production growth and an additional milking day in 2024.

In its May supply and demand report, the USDA raised its forecast for 2023 butter and nonfat dry milk prices because of strong demand, while cheese and whey prices were lowered.  USDA is forecasting the Class III price to lower and Class IV to increase.

Next year the agency expects the Class III price to be lower as well because of weaker whey prices and Class IV to decline because of lower butter and nonfat dry milk prices.

The 2023 all milk price forecast declined 15 cents to $20.50 per hundredweight.  Next year USDA’s forecast is set at $19.90.

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