The dairy industry has had more than its fair share of challenges in the past months and years. We have discussed low prices, trade issues, access to foreign markets, H5N1 disease, and more. The American dairy industry also feels the effects of contracted farms and operations. While that number hasn’t been as intense as in years past, it still has an effect.
To that end, we got the latest verified milk production numbers from the USDA. When we run the comparison of the May 2024 numbers against the prior year, we can see that production numbers are down—Kathleen Wolfley of Ever.Ag talks about what the numbers are showing us.
While the numbers are a little lower, we do have some positives to see as well. We are seeing an increase in cows between April and May, which means that should start to show an uptick in numbers.
Of course, lower milk production also means tighter supplies of other dairy products. That affects the price you pay in the supermarket.
That trend was seen in the latest cold storage report.
It will be a waiting game to see how long it takes to see an increase in production after the increase in herd animals.
