Is milk production finally increasing?


Is milk production finally increasing?

The National Dairy Federation’s chief economist says the latest milk production report could indicate farmers are starting to rebuild their effective capacity.

Peter Vitaliano says Brownfield milk production has not increased in the past year and that this is unusual.

“It was almost as if producers collectively said, ‘We’ve spent enough time ramping up our production in the face of tough price conditions, we’re just done with it,'” he says.

He says high feed costs, inputs, labor, lack of replacement heifers and building materials have kept a cap on expansions.

“Despite all these cost challenges, milk prices have reached record levels as a result of this tight supply situation, with both domestic and international demand remaining quite strong,” he says.

August USDA report showed milk production up 1.6%. Vitaliano says production is up in almost all major dairy states.

He tells Brownfield that next month’s report should tell if a change is underway. Is milk production finally increasing?

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