August milk production up 2.2 percent

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August Milk production in the 23 major states totaled 15.3 billion pounds, up 2.2 percent from August 2010, according to USDA’s latest Milk Production report released Monday afternoon.

July revised production at 15.4 billion pounds, was up 0.5 percent from July 2010. The July revision represented a decrease of 45 million pounds or 0.3 percent from last month's preliminary production estimate.

The hot weather didn’t take too much of a toll on milk production during August. Production per cow in the 23 major states averaged 1,810 pounds for the month, 18 pounds above August 2010.     

This bearish milk production report to put on top of the limit losses in October and November today.  Overall it appears as though cooler weather and $20 milk had more of an immediate impact on milk production than heat and drought in other areas of the country, notes Dave Kurzawski, market analyst with FCStone.

Meanwhile, the national dairy herd continues to increase. According to the report, the number of milk cows on farms in the 23 major states was 8.47 million head, 102,000 head more than August 2010, and 3,000 head more than July 2011.

Access the complete report.


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