According to the latest All-Milk price forecast, economists expect the dairy market to strengthen in the coming year. In the latest World Agricultural Supply and Demand Estimates (WASDE) Report, the All-Milk price was increased 20 cents to $22.70 per cwt. for 2023.
While Class III prices held steady at $19.70 per cwt., Class IV forecasts surged 50 cents from $20.35 to $20.85 per cwt. That Class IV increase is being driven by butter prices which set new, all-time highs earlier this September. Overall, butter inventories have remained low, which have helped push prices higher here at the end of 2022.
According to the USDA’s September Milk Production Report, 9.0 billion lb., up 1.6% from August 2021. Production per cow also saw a spike, averaging 2,018 lb. for August, 34 lb. higher year-over-year. Cow numbers, on the other hand, saw a decline. The number of milk cows on farms in the U.S. was 9.43 million head, 11,000 head fewer than August 2021, but 8,000 head more than July 2022.
