The US Department of Agriculture has presented a forecast for the development of the dairy industry for the next ten years

The USDA forecasts growth in all dairy product categories over the next decade, despite current market fluctuations. Cheese prices hit their lowest since April, while butter prices remain stable and SMP and whey powder prices rise. Milk production has not recovered as predicted, but milk yields per cow have increased, leading to higher production figures. The USDA projects a steady increase in the cow population, milk production, and average gross price for milk, with cheddar cheese and whey powder prices expected to rise. However, farmers must prepare for market volatility due to domestic supply and demand fluctuations, global market conditions, and political events.

The USDA's baseline forecasts all dairy product categories are expected to grow over the next decade, Dairy Herd reports. The market is currently experiencing significant changes, as cheese prices are at their lowest levels since April of this year. Butter prices have remained virtually unchanged since early October after falling from their peak in late August. SMP and whey powder prices, on the other hand, are on the rise. Premium SMP prices reached their highest level since November 22, 2022, and whey powder prices rose to their highest since April 22, 2022. Strengthening powder prices prevented a significant drop in Class III and IV milk prices caused by weakening butter and cheese prices. Contrary to expectations, milk production has not recovered this fall, and demand has not reached the levels predicted by experts and analysts. This has left the butter and cheese markets in a difficult situation. As prices fell, buyers made purchases based on existing contracts and expected ...