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USDA reduces milk production estimate

The USDA has trimmed its milk production projection for 2025.

Production is now seen at 226.2 billion pounds, a decline of 700 million from February due to a lower per cow output. The average all milk price is estimated at $21.60 per hundredweight, $1 below last month, with lower fat and skim basis exports and nearly unchanged domestic use. In 2024, the average all milk price was $22.61.

Class III prices are pegged at $17.95 per hundredweight, a drop of $1.15 on cheese and whey price weakness, with Class IV expected to average $18.80, a decline of $.90 due to reductions for butter and nonfat dry milk prices. For 2024, Class III averaged $18.89 with Class IV at $20.75.

Those cuts to product prices are in-line with recent trends.

The USDA’s next round of supply and demand numbers is out April 10^th.