Dairy Market Report forecasts little improvement for 2022
The decreased milk production and increased costs experienced in the dairy industry in 2021 is expected to continue well into 2022, reflecting figures not seen since 2014, due to lower milk production, higher prices and decreased domestic consumption, according to the DMI Dairy Market Report.
Growth for commercial use of milk in all dairy products was positive for fat and skim solids due only to increased US exports, as domestic commercial use dropped by 0.5%. In contrast, US exports amounted 17.6% of its domestic milk solids – the highest ever, as US consumption of fluid milk and American cheese drops. US milk production was growing steadily for decades, however production growth was negative for one in every six, three month rolling averages over a 25 year period, signifying the growth instability.
Decreasing numbers of dairy cows are a major driver behind the 0.7% decrease in milk production from the previous year, which is attributed to decreased domestic dairy consumption, in addition to rising costs of feed, as more expensive feed means farmers are keeping less cows in order to save money, or feeding their cows less, resulting in decreased milk output.
This marked decrease in cow numbers and dairy product production is reflected in stocks and prices in the dairy industry, with figures sitting at similar levels to 2014, whilst butter and cheese figures see their lowest since 2000. These figures are expected to continue into 2022, according to Dairy Futures, with US milk production predicted to rise only 0.7% from 2021. It is also anticipated that US milk solid exports will reach yet another record.
To view the full DMI Dairy Market Report, visit: https://issuu.com/nationalycprogram/docs/jan._2022_dairy_market_report
