The U.S. dairy market maintains stability in milk production through 2024 and 2025, despite minor adjustments in cow inventories and slower growth in milk yield. Significant increases in dairy exports and product prices underscore a strong international and domestic demand for dairy goods.
Milk production forecasts remain stable for 2024 and 2025, despite shifts in cow inventories and milk production rates.
U.S. dairy exports are set to increase over the next two years, driven by strong international demand for products like cheese and butter.
Dairy product prices are trending upwards, influencing higher Class III and Class IV prices, with the all-milk price projected at $21.60 per cwt for 2024 and $21.50 per cwt for 2025.
Milk production for 2024 and 2025 is projected to remain stable with slight fluctuations in cow inventories effectively offset by moderated growth in milk output per cow. This ensures a consistent supply in the face of rising product demands.
On the global stage, U.S. dairy exports are expected to increase significantly. The 2024 forecast shows a rise in exports on a fat basis, particularly for cheese, while skim-solids exports maintain previous levels. The trend continues into 2025 with increases anticipated in both fat and skim-solids exports, driven by robust international demand.
Imports of dairy products into the U.S. are also on the rise. Enhanced import forecasts for both 2024 and 2025 across fat and skim-solids bases reflect increased demands for butter and milk protein-containing products. This trend aligns with the growing domestic consumption needs and the strengthening of the global dairy trade network.
Price forecasts for butter, cheese, whey, and nonfat dry milk show upward revisions for 2024 due to recent market strengths, with similar trends expected to persist into 2025. These adjustments have led to increases in Class III and Class IV milk prices, indicating sustained demand strength across key dairy products.
Hedgify’s platform can provide valuable stability for businesses navigating these fluctuating dairy markets, ensuring cost predictability and risk management.
The information provided in this market insight is for general informational purposes and should not be considered financial advice. It is not intended to offer any financial recommendations or endorsements. Any decisions made based on the content are the sole responsibility of the reader.
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