Milk was flowing in August, as production in the top 23 dairy states was up 2.7 percent compared to the same month a year earlier.

Across the entire U.S., milk production was up 2.6 percent, according to the "Milk Production" report released by the U.S. Department of Agriculture on Thursday afternoon.

Dave Kurzawski, dairy analyst with FCStone in Chicago, called the report "bearish," since the increase was higher than expected.

“This jump comes as a particular surprise," he said, "as feed costs during August were yet to really come off in any meaningful way. And with better quality feed likely to make its way into the ration moving forward, one would surmise we have the potential to see substantial gains in milk production following the grain harvest.” 

Kansas posted the largest gain at 8.8 percent, followed by Iowa at 8.0 percent and Florida at 6.9 percent. Meanwhile, the No. 1 milk-producing state (California) was up 2.7 percent and the No. 2 state (Wisconsin) was up 1.7 percent in August 2013 compared to August 2012.

To read the entire report, click here.

This is an abbreviated milk production report from the USDA. Initially, the USDA suspended the report and several others in the wake of the automatic federal budget cuts known as sequestration. However, the department reversed its decision and announced that it would provide partial milk production estimates through September.