The Agriculture Department has reduced its forecast for US milk output for next year, with dairy producers preferring to produce other products such as butter and cheese.
The USDA cut its forecast for 2024 milk output to 229 billion pounds, down 1 billion pounds from its previous forecast and the lowest estimate for that year, in its monthly global agricultural supply and demand report released on Friday. The USDA also reduced its prediction for 2023 milk output by 200 million pounds from November to 226.9 billion pounds.
The USDA attributed the reduction to “reduced” milk output per cow, as well as a smaller dairy herd.
Dairy producers prefer to have their cows produce more components for products such as butter and cheese, which reduces milk output, according to Corey Geiger, CoBank’s chief dairy economist. “Most consumers are eating their dairy products these days as opposed to drinking beverage milk.”
Farmers are feeding their cows in such a manner as to generate more butterfat, according to Geiger in a CoBank research released in November, as butterfat products have regained appeal after public perception regarding saturated fats turned to being more favorable.
As a result, dairy cows produce less palatable milk.
According to USDA statistics, the proportion of butterfat in milk has climbed to its highest level since the Great Depression, with the percentage increasing dramatically in the last ten years.
