Margins Improve, but Not Enough to Spur Milk Production Growth

dairy cows feeding

Report Snapshot

Milk production started the year with a steeper-than-expected decline in January.

Margins are improving with lower feed costs, and new plants under construction are looking for milk supply. However, high expansion costs, expensive replacement heifers, and enticing beef-on-dairy cross revenues continue to hold back production growth at the national level.

The number of milk cows in the U.S. fell by 28,000 head in January compared with December. Cow numbers increased slightly from January to February by 10,000 head but remained 89,000 head below last year. Through mid-March, dairy producers sent nearly 100,000 fewer cows to slaughter in 2024 than in the same period last year, but even that was not enough to stem the tide. Producers wanting to maintain or increase their herd are left with the option of holding on to older cows for longer or buying $2,500+ replacements.

Continue reading report at TerrainAg.com.

Terrain content is an exclusive offering of Farm Credit Services of America, Frontier Farm Credit and American AgCredit.

While the information contained in this site is accurate to the best of our knowledge, it is presented “as is,” with no guarantee of completeness, accuracy, or timeliness, and without warranty of any kind, express or implied. None of the contents on this site should be considered to constitute investment, legal, accounting, tax, or other advice of any kind. In no event will Terrain or its affiliated Associations and their respective agents and employees be liable to you or anyone else for any decision made or action taken in reliance on the information in this site.



Related

  • may-wasde

    Economic Updates

    May WASDE Projects Price Pressure

    The May 2024 WASDE provided the first projections of supply and demand for the new marketing year. If projections pan out, producers are looking at strong production for the 2024/25 marketing year, increased supply and lower prices for corn and soybeans.

  • herd of cattle feeding

    Economic Updates

    Terrain | Delayed Marketing Bolsters Cattle Feeders' Bargaining Position

    As fed cattle are given time to recover from a harsh winter, the beef will move into a stronger spring grilling market.

  • laptop with phone laying on top with screen open to graph

    Economic Updates

    Efficiencies on Farm, Ranch Key in Higher Rate Environment

    Economic data increasingly points to interest rates staying higher longer. Financial efficiency will be critical in the year ahead, and we step you through three ratios that will help you focus on the right areas of your farm or ranch.