On Tuesday, USDA released its cattle inventory report. The report showed there are 4.75 million milk replacement heifers. According to Mike North of Commodity Risk Management Group, that’s more than half of the milking herd.
Milk production is likely to stay strong because of an “increase in components that offset the loss in fluid production.” He says this production isn’t going to end any time soon and U.S. dairy producers are going to have to start exporting their products.
“Demand at home is not going to get the job done,” said North.
Listen to North discuss the “massive discount” applied to Holsteins, the large heifer herd, and U.S. demand on Market Rally above.
Source: AgWeb
Link: http://www.agweb.com/article/milk-replacement-heifers-at-largest-numbers-since-mid-1980s-naa-ashley-davenport/