June 1, 2005

Increased US milk production weigh on prices of dairy products

According to a recent report by the US Department of Agriculture (USDA), seasonal milk production is increasing to such an extent that processing capacity is being stretched beyond its ability. Domestic dairy cow numbers are also increasing.

The effect of increased milk production is weighing on cheese and butter prices. The USDA also highlighted that the reduced dairy prices suggest that cheese consumers do not foresee a need to stock cheese for the future in light of the high volume of milk production.