The Latest: June - 2025
Milk Flows Again as Herds Grow
The heifer shortage and avian influenza reined in U.S. milk output in 2024, fostering lofty milk and dairy product prices in the second half of last year. But after nearly two years of low cull rates and sheer grit, the parlors are full, and so are the milk tanks. In the first 24 weeks of 2025, dairy cow slaughter was 7.7% behind the 2024 pace and 15.6% slower than historic average cull rates. Dairy producers added 122,000 cows over the past 11 months. From coast to coast, but especially in the center of the country, producers are looking to expand their facilities and add significantly more cows over the next 18 months.
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U.S. cheese production topped 1.14 billion pounds in September, scoring an all-time high in daily average output. There is clearly plenty of fresh Cheddar available, and cheesemakers are unloading some at the market of last resort in Chicago.
View reportThe U.S. dairy herd is much smaller than once thought, and milk production barely grew at all in September. Early indications suggest milk output is once again below year-ago levels in Europe.
View reportUSDA’s Milk Production report, released Wednesday, suggested that national milk supplies are growing at a slower rate than many analysts previously believed. Lighter milk supplies have likely helped to keep upward pressure on the markets this week.
View reportDespite some moderation during Friday’s spot session, gains earlier in the week left prices higher than last Friday for both butter and nonfat dry milk (NDM), pushing Class IV milk values upward.
View reportHot weather weighed on U.S. milk yields and slowed milk powder output in August. As the impacts of the summer heat wave fade and bottlers settle into the school milk routine, there is more milk available for processing.
View reportThe bulls were put out to pasture this summer, grazing in paddocks far from LaSalle Street. But fall is here, and they are back home enjoying a high energy ration, pushing several markets to their highest price in months.
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