Markets & Management

Milk production has grown tremendously this year. Every month through July has experienced year-over-year (YOY) growth. Through July, 3.41 billion more pounds of milk have been produced on U.S. dairy farms compared to 2020 after adjusting for 2020 leap year. This is a 2.6% increase in milk production compared to the first 7 months of 2020. Looking back at the last 10 years, YOY  milk production growth has increased an average of 1.4%. However, summer heat and drought conditions in much of the dairy producing parts of the country seem to have slowed production growth for now. In May, during the height of the spring flush, YOY growth reached 4.6%, followed by 2.9% growth in June, and slowing in July at 2.1%. With what seems to be an abundant supply of milk, where is it going? Read More