New data reveals a significant increase in U.S. milk production, driven by a larger dairy herd and greater output per cow. While highlighting the industry’s growth capacity, the surge is creating a surplus that markets have yet to absorb, prompting calls for strategic efficiency and innovation.
Key Production Figures:
- National Increase: Total U.S. milk production reached 18.8 billion pounds in November, up 4.5% from November 2022.
- Major States: In the 24 major dairy states, production hit 18.1 billion pounds, a jump of 4.7% year-over-year.
- Growing Herd: The national dairy herd expanded to 9.57 million head, an increase of 214,000 cows from the same period last year.
- Higher Yield: Production per cow also rose, averaging 1,963 pounds nationally—41 pounds more than last November.
Read More: Camel Milk Blues: Health Hype Fades as Demand Flatlines
Industry Analysis:
Experts note the growth is partly measured against a period impacted by avian influenza (HPAI) cases last year. However, the consistent expansion is clear.
- Phil Plourd of Ever.Ag Insights emphasized the herd growth, stating, “+211,000 year-over-year… That says it will be a while before we see dramatic slowdowns.”
- States like Kansas (+26.4%) and South Dakota (+10.8%) are leading the growth, supported by major processing facility expansions from companies like Hilmar Cheese and Bel Brands.
- The result, as noted by Robin Schmahl of AgMarket.net, is simple: “We have a lot of milk.”
Future Outlook & Challenges:
With production outpacing current market demand, industry leaders are focusing on strategic growth and innovation to remain competitive.
- Michael Dykes, CEO of the International Dairy Foods Association, warned, “If we aren’t growing, if we aren’t looking toward the future, we’re going to get surpassed by others.”
- As the new year begins, the central challenge for producers will be navigating the surplus through internal efficiency gains, innovation, and proactive market strategies to adapt to evolving economic conditions.
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Disclaimer
I do my best to share reliable and well-researched market insights but occasional errors or omissions may slip through. Please view all content as informational.
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