Dairy Demand Expected to Increase in 2022

After a tumultuous 2020 and 2021 for U.S. dairy producers and despite labor and inflationary challenges, 2022 could bring some respite. Undeterred by lower cow numbers and overall milk production, milk price forecasts have increased for next year. Even with logistical challenges this year, USDA reported an increase in dairy exports and expects that momentum to continue into the new year. The all milk price forecast for this year is raised this month by 20-cents, to $18.50 per cwt. Next year, the price is raised by 55 cents to $18.40 per cwt. Read more on dairy demand and exports.