WASHINGTON, DC – Though there have been challenges within the domestic dairy industry over the past few years, 2022 is shaping up to be a record year for prices, according to the latest data from the National Milk Producers Federation (NMPF).
The record for dairy prices was last set in 2014 at $24.00 per hundredweight (CWT), but the projections for this calendar year are for an average price of at least $25.50/cwt.
The government safety net for producers is also expected to decline with the higher prices. The Dairy Margin Coverage price will dip below $9.50/cwt and remain below those levels throughout much of 2023.
Some of the price strength is related to domestic commercial use and increasing dairy exports.
U.S. milk production has increased every month since July (compared to last year), while dairy cow numbers continue to grow, indicating more significant increases in milk production in the near future.
(SOURCE: All Ag News)
