Milk production has definitely kicked into a higher gear.

On April 19, the USDA reported that milk production in 23 leading dairy states was up 4.3 percent in March compared to the same month a year earlier. Across all 50 states, production was up 4.2 percent.
It follows February’s hefty increase of 4.3 percent (across all 50 states).

Last year, the rate of growth was less. Year-over-year increases through the first seven months of 2011 were generally below 2 percent.

Dave Kurzawski, dairy market analyst for FC Stone/Downes-O’Neill in Chicago, called the report “neutral” since it was in line with market expectations.

“It’s hard to call north-of-4 percent milk production growth neutral,” Kurzawski acknowledges. “The number is bearish with a capital ‘B.’ But pre-report expectations were for a slightly larger number than we received. So this report is neutral relative to expectations, bearish from a broader picture of supply/demand,” he adds.

March milk production up 4.2 percent