Dairy Industry Snapshot

Avg. Price per Cwt.	2020	2021	2022	F2023
Boston Blend Price¹	17.10	17.84	24.96	20.89
Avg. WNY Blend²	16.00	16.85	24.00	22.38
USDA All-Milk Price³	18.24	18.53	25.65	22.70

F=forecast

November 2022 U.S. milk production increased 1.3% from November 2021. The national dairy herd decreased slightly, but this was more than offset by increased productivity per cow.
On a state-by-state basis, in November, there were Y-O-Y increases in production in some major producing states, including, Idaho (2.3%), Texas (6.3%) and Wisconsin (1.3%). Notably, California (-0.5%), and New Mexico (-4.3%) showed declines. In the Northeast, New York had an increase of 3.2% Pennsylvania was flat and Vermont showed an increase of 1.5%.⁴
Long-term futures foresee some softening in milk prices in 2023, bringing the average milk price next year down by about $2-3.

¹ Agri-Mark Price Forecast
² Upstate Niagara Price Forecast
³ USDA World Agricultural Supply and Demand Estimate (WASDE)
⁴ USDA NASS Milk Production Report

Tags: dairy