WASHINGTON--The USDA April Milk Production report is in and it reveals an industry struggling during the pandemic. It reveals more dairy cows and more milk per cow than a year ago. That adds up to April US Milk production going up 1.4 percent from last April.
“We expect production to continue to increase into 2021,” said Mark Jekanowski of the USDA.
USDA Outlook Chairman Mark Jekanowski, says US dairy herds in April are slightly smaller than March, yet still half a percent bigger than April a year ago. Milk per cow is averaging 1-percent more. The USDA is forecasting total milk output this year at just under 222 1/2 billion pounds.
"In 2021, we expect that to hit about 224.1 billion pounds," said Jekanowski.
Jekanowski says the all milk price this will average well under $15-dollars hundredweight at $14.55. This week the USDA announced the March income over feedlots margin was $9.50 triggering the first payments this year under the dairy margin coverage program.
Looking ahead to next year Jekanowski is looking for milk prices to top this year by .45 cents to an even 15 dollars. “Given the return to more normal demand conditions," said Jekanowski.