Dairy: Flat Production & Higher Prices

AgDay Analysis 061819
Ponderosa Dairy - Amanda Arata - Nevada ( Wyatt Bechtel )

The United States Department of Agriculture released it's May Milk Production report Tuesday. In the 24 major milk producing states during the month, production totaled 18.1 billion pounds. That's down 0.1 percent from May of 2018.

Production per cow in the 24 major States averaged 2,062 pounds for May which is 11 pounds higher than a year ago and the number of milk cows on farms totaled 8.79 million head. That's 55,000 head less than May of 2018, but 5,000 head more than April 2019.

Naomi Blohm with Stewart-Peterson recently spoke to AgDay's Clinton Griffiths about the dairy complex and the recent return to better prices.

"The milk futures complex has actually been increasing over the past couple of months," says Blohm. "We have milk prices back up to $17, which is profitable for some and break even for others."

Blohm says the recent rally is due to better cheese prices. 

"They're actually the highest that they've been in about two years," says Blohm. "Demand is there and actually on the weekly cheese stocks, three out of the past six weeks, we've seen cheese stocks decline."

Blohm says exports have improved in recent weeks but are still trailing last year's levels. 

Listen to her full comments in the video.