The USDA predicts lower milk output this year and increased production in 2024. The organisation predicts that cow stocks will be higher this year, with slower milk per cow growth, than dairy cows will enjoy output increase and an extra milking day in 2024.
Because of robust demand, the USDA upped its projection for 2023 butter and nonfat dry milk prices in its May supply and demand report, while lowering its forecast for cheese and whey prices. The USDA predicts a decrease in Class III prices and a rise in Class IV prices.
The agency forecasts Class III prices to fall due to lower whey costs next year, and Class IV prices to fall due to reduced butter and nonfat dry milk prices.
The prediction for total milk prices in 2023 has dropped 15 cents to $20.50 per hundredweight. The USDA projection for next year is $19.90.