Fran Howard

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Uncertainty remains whether falling output in Mexico benefit the U.S. dairy industry.
High cheese prices and declining feed costs have finally dealt dairies a winning hand.
Producers are poised to increase output, but will it be enough to help feed global demand?
Demand for MPCs takes milk from dryers, lowering milk powder output.
Nearly all the growth in total U.S. dairy exports tied to demand from Mexico.
Dairy exports to Mexico set several records.
Lower milk solids could mute the impact of faltering sales.
As the milk supply tightens, milk prices rise, and cheese manufacturing capacity expands, more milk dryers could run light.
U.S. exports of nonfat dry milk have been falling since 2020.
Challenges remain, though, for producers who want to expand.
Processors directing much of the whey stream to WPC and WPI.
Limited U.S. milk production likely will offset weakening exports.
U.S. dairy producers appear to be keeping more low-end cows in their herds to keep barns full.
Elimination of some Green Deal requirements for farmers could reduce declines in EU milk production going forward
International demand needs to pick up before U.S. milk prices can increase significantly.