News
Milk Production Drops for The Seventh Month in A Row
Once again, New Mexico led the way with the steepest decline in milk production with 97 million fewer lbs. and 42,000 fewer cows. Texas also saw a drop of 56 million lbs. and 15,000 fewer cows. This is partly due to the large barn fire last April at South Fork Dairy Farm in Dimmit. Idaho also saw a decline of 29 million lbs. and 1,000 fewer head.
Not surprisingly, South Dakota was once again on the positive side of the ledger, jumping 39 million lbs. with 21,000 additional cows. The state has increased more than 70% in cow numbers since 2019. The state’s GOED Commissioner, Chris Schilken, says that economic increase has added nearly $4 billion annually to the state.
Wisconsin jumped 25 million lbs. with unchanged cow numbers and Florida picked up 10 million lbs. with 6,000 additional cows.
According to Phil Plourd, president of Ever.Ag Insights, the report shows mediocre performance at best, as on-farm financial performance continues to weigh on overall output.
“I think that the turn-of-the-year retreat in cheese prices – and subsequent drag on Class III milk – was figuratively and literally deflating,” he says. “It’s tough out there, especially in cheesemaking regions. This comes atop ongoing structural issues in places such as New Mexico. The Southwest’s flip from reliable surplus to ‘hey, where did all the milk go?’ deficit is – and will remain – a key storyline, especially as we see cheese plant capacity in the region expand. Closer to the here-and-now, one question came immediately to mind: What does it tell us that milk production was down by the widest margin in years, yet cheese prices are struggling to hang on to any gains?”
