click image to zoom The headline, “February milk production up 8.3 percent” is shocking, since monthly reports from the U.S. Department of Agriculture rarely show an increase of more than 3 percent on a year-over-year basis.
Then, the USDA noted that February was a leap year month, so an adjustment was made from 8.3 percent to 4.6 percent so an equal number of days were compared.
Still, the increase shown in the March 19 report was higher than anticipated. FC Stone/Downes-O’Neill market analyst Dave Kurzawski calls it “bearish.”
The 4.6 percent adjusted increase occurred in the 23 major dairy states.
Production per cow in the 23 major states averaged 1,782 pounds in February, 117 pounds higher than the same month a year earlier.
Cow numbers in the 23 major states increased by 102,000 head over the same time period.