The USFA had forecast in its previous World Agricultural Supply and Demand Estimates (WASDE) report in July that 96.34m tonnes of milk would be produced this year.

This had been reduced to 96.21m tonnes in the latest WASDE. The fall in production is largely due to a reduction of growth in milk per cow.

The Department did however raise the 2017 milk production forecast from 97.79m tonnes to 97.89m tonnes. The rise is due to the fact that feed costs in the US are set to drop at the end of this year, which will lead to increases in herd numbers and milk produced per cow.

ADVERTISEMENT

Helping America’s dairy operations remain successful

Earlier this month, the USDA released $11.2m in aid for struggling dairy producers who are members of the 2016 Margin Protection Program.

Agriculture Secretary Tom Vilsack said he understands the plight of dairy producers who are in tough financial times. “By supporting a strong farm safety net, expanding credit options and growing domestic and foreign markets, USDA is committed to helping America’s dairy operations remain successful,” he said.

Read more

UK milk production continues to fall

Dairy trends: Markets on definitive upward trend