The USDA's Milk Production report for December 2022 reveals a slight increase in milk production in the U.S. and major dairy states, with a total of 18.93 billion pounds and 18.125 billion pounds, respectively, showing a 0.8% and 0.9% increase from the previous year respectively. However, the rate of growth has slowed due to a decline in cow numbers. Despite an increase in the average milk production per cow, the growth remains subdued. The smallest year-over-year monthly increases were observed in December, with only 15 states showing year-over-year volume growth, led by Texas. The quarterly and total-year estimates also show a slight increase in milk production and a slight decrease in the average number of milk cows in the U.S. compared to the previous year.