September 27, 2006

US milk production up despite the heat

US August milk production in the 23 major producing states totaled 13.9 billion pounds, similar to July but 1.6 percent above August levels last year, according to USDA's preliminary data.

Production per cow averaged 1,680 pounds, up nine pounds from August 2005. Milk cow numbers totaled 8.25 million head, 88,000 head more than August last year.

Analysts have pointed out that cow numbers in the 50 states were down 10,000 from July and down 22,000 from June, indicating the first contraction in three years and could be a bullish factor in the months ahead.

The USDA's latest livestock slaughter report shows that the number of cows culled in August this year has risen by 27,000, a ten-percent increase from last year.

About 1.5 million head have been taken out of the dairy business in the first eight months of 2006, up 44,000 head from a year ago.

California milk production did well despite the July heat, up 4.1 percent from August 2005, with 9,000 more cows and 65 pounds more per cow.

However, Wisconsin was down 0.9 percent despite having 8,000 more cows, as output was 25 pounds lower per cow.

The biggest increase occurred in Colorado, up 7.7 percent, with 9,000 more cows and a 65-pound increase per cow. Texas also saw increased production of 7.3 percent on a 30-pound gain per cow and 17,000 more head.

Missouri milk production suffered the steepest drop, down 9.3 percent from a year ago.