Dairy Report: Milk Production Forecast on the Rise
Dairy Report 041123
The USDA released its new outlook for dairy this year, raising its milk production forecast. It says milk production in 2023 is predicted to be just over 228.5 billion lbs. That’s 200 million lb. higher than last month’s forecast.
Milk cows are projected to average more than 9.390 million head, that’s 10,000 head higher than last month. However, cow numbers are expected to decline through the year as lower numbers of replacement heifers and higher expected cull cow prices will likely contribute to the decline of the U.S. dairy herd.
Another DMC Payment
For the second time this year, Dairy Margin Coverage (DMC) payments will be issued. February’s income over feed cost calculation is $6.19 per cwt. Milk production coverage at the $9.50 level will receive $2,622.59 for each one million lb. insured.
Phil Plourd, president of Ever.ag, says that we’ve seen a little improvement in the numbers over the past few weeks, although the margin picture for 2023 continues to look weaker compared to what we saw in 2022.
