Dairy demand continues in the US, shifts to cheeses and whey

Published 2024년 7월 8일

Tridge summary

Despite rising dairy production and strong consumer demand in Texas, milk prices remain low, posing challenges for dairy producers who are also dealing with past drought conditions. The market has shifted from fluid milk to other dairy products like cheese and butter, with per capita consumption increasing significantly. Processing capacity issues have led to milk dumping, but new plants are expected to alleviate this. Whey has emerged as a major revenue source, offsetting declines in other dairy products. Agricultural conditions vary, with some areas experiencing drought stress while others report good crop and livestock conditions. Overall, the dairy industry faces low prices and high input costs, leading to the closure or consolidation of smaller operations.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Milk prices remain in a slump even as Texas dairy production and consumer demand continue to rise, according to Texas A&M AgriLife Extension Service experts. Summertime is typically good for dairy producers as rising temperatures typically translate into higher demand and reduced production going into the dog days of summer. As a result, retail prices for many dairy-based products like ice cream, cheese and butter rise. However, last year’s price increases for retail products never trickled down to better raw milk prices for producers, said Jennifer Spencer, AgriLife Extension dairy specialist, Stephenville. And while raw milk prices are slowly trending upward this summer, they are still $5 lower per hundredweight than historically high prices in 2022. Texas dairy producers are getting around $18.50 per hundredweight for raw milk this year compared to $23 per hundredweight for most of 2022, peaking at $25.87 in June and July that year. And prices are $1 per hundredweight lower ...

Source: Farm Progress