Report for January
Retail dairy product price inflation continued to affect domestic commercial use of milk during the September–November period, even as inflation itself rose more slowly than in previous months. U.S. dairy exports that are on track to set a new calendar-year record as a percent of U.S. milk solids production, at about 18 percent, helped buttress prices against the domestic-use decline. The national average milk price continues its gradual decline from the all-time high it achieved in May, while still remaining at historically high levels. Stocks of butter and cheese continue to drop, but so do their prices as well.
Price-feed cost margins under the Dairy Margin Coverage (DMC) program remained well above the $9.50/cwt maximum coverage level in November, but forecasts indicate the margin will soon drop below this level for well into the summer.
Read the full January 2023 Dairy Report here.