USDA Raises Milk Price Projections

USDA has raised the 2023 all-milk price projection for the first time in months. The raise comes after a solid stretch of low milk prices. In August’s World Agricultural Supply and Demand Estimates (WASDE) report, projections were lowered, along with cow inventory.

Forecasts were lowered to 227.9 billion pounds, 5 million pounds lower than in July. The shift would increase production by 0.6% compared to 2022. Butter prices and Class III milk both saw jumps, with butter climbing 6 cents to $2.49 per pound, and Class III milk increased a substantial 85 cents to $16.90 per cwt. For 2024, milk price predictions closely mirror 2023.

Read more on milk price shifts from USDA here. Learn more about how Dairy Revenue Protection can help supplement your risk management needs for today’s dairy operations.