Dairy Market Trends of Late 2016 Continue Into 2017

Dairy markets of 2016 will be remembered for a reversal of economic conditions from the first half of the year to the second half. By Livestock Marketing Information Center
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Nationally, the “All Milk” price at the farm reported by USDA-National Agriculture Statistics Service bottomed out at $14.50 per hundredweight in May 2016 and pushed higher throughout the balance of the year to finish at December at $18.80. The January 2017 price tacked on another dime, to $18.90, a 17% increase from twelve months earlier.

Rising prices have been one factor encouraging additional milk production. January 2017 milk output was up 2.5% from a year earlier. The majority of the increase was driven by more milk cow productivity, as milk per cow improved by 1.8% based on the year-over-year comparison. Over that same interval, the number of cows being milked increased by 0.6%. The better milk cow productivity is not a nation-wide trend, but concentrated within a few select states. Leading the way are Texas, where milk cow productivity was up 9.8%, and New Mexico with a 10.0% gain. Utah dairies posted a 4.3% year-over-year productivity increase. The two biggest milk production states, California and Wisconsin, registered productivity gains of 0.3% and 1.0%, respectively.

Expanding dairy herds in the southwestern U.S. are enabling the productivity gains with modern production facilities and milk cow breeding improvements. The Texas dairy cow herd in January was up 39,000 head from twelve months earlier, accounting for more than half the increase in U.S. dairy cows, that increased by 67,000 head. The dairy cow population in Wisconsin was unchanged over this same period of time and the California herd declined 14,000 head. The New Mexico dairy cowherd increased by 15,000 head (4%) year-over-year. Other states that are expanding dairy herds significantly are Idaho, Kansas, and Michigan. A general shift from northern states to the south is also having an impact on seasonal milk production patterns as the milder southern weather enhances average U.S. milk cow output statistics during winter months.

Source: DairyHerd

Link: http://www.dairyherd.com/news/markets/dairy-market-trends-late-2016-continue-2017

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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