AVN WEB DESK
The United States Department of Agriculture (USDA) in its recent World Agricultural Supply and Demand Estimates (WASDE) report has anticipated a significant rise in milk production for the 2024-25 period, attributing it to a surge in both the number of dairy cows and milk output per cow, showing efficiency in dairy operations across the United States.
The report says that the updated forecasts estimate 2024 milk production to reach 227.3 billion pounds, a noticeable jump from the previous year’s total of 226.4 billion pounds. This upward revision by 1 billion pounds from last month’s report reflects positive trends in dairy farming practices and herd management.
Moreover, it says the dairy sector is also set to benefit from strong market demand, which has led to increased price forecasts for key products like cheese and butter. The 2024 projected Class III milk price has been raised to $16.75 per hundredweight, reflecting a positive adjustment of 55 cents. Although there is a slight reduction in the Class IV price, the overall all-milk price for 2024 is anticipated at $21.20 per hundredweight, underlining a favorable economic outlook for dairy farmers, the report adds.
Looking ahead to 2025, the USDA estimates even further growth in milk production, projecting a total of 229.3 billion pounds. This forecast aligns with expectations of continued increases in both domestic use and commercial exports, buoyed by consistent gains in product yields on a fat and skim-solids basis.
Beyond dairy, the USDA report also covers other agricultural sectors. For instance, beef production forecasts for 2024 suggest a lower output due to tighter cattle supplies, which is offset by higher expected slaughter rates in later quarters. The 2024 fed cattle price is set to increase, indicative of a tightening supply and potentially higher returns for beef producers.
The report extends its analysis to crop forecasts, particularly noting the US corn and soybean outlooks. Corn production is projected at 14.9 billion bushels, slightly down from last year but supported by an increase in yield expectations. Meanwhile, the soybean sector is anticipated to see a rise in crush and exports, thanks to higher demand for soybean oil and meal, essential components in biofuel and animal feed, respectively.
It says that the hay production, crucial for both dairy and beef farming, has also shown promising figures with substantial increases in on-farm hay inventories, signaling ample feed availability for the upcoming year.
These comprehensive updates from the USDA are not just numbers; they represent a broader narrative of resilience and progress in the US agriculture sector. As the industry continues to adapt and thrive, the positive ripple effects are expected to benefit farmers, markets, and consumers alike, promising a sustainable and prosperous agricultural economy.
