Strong Demand Drives Record-High Milk Prices

Strong demand and tight supplies have fueled milk prices to at- or near-record highs thus far in 2022. U.S. milk production was down 1% last month from April 2021, with cow numbers steady at 9.4 million. Forecasts predict milk prices to remain high with milk futures in the mid-20s per hundred weight.

South Dakota, however, proves to be an outlier in the equation, with monthly increases of nearly 21% in March and 17% in April compared to 2021. But before more cows can be brought in for willing dairy producers, the state needs additional processing capacity. The South Dakota Dairy Producers Association says they are actively trying to recruit another milk processor to the I-29 Corridor, either through existing capacity or a new facilities.

Read more on U.S. milk production and prices here.