According to October's Dairy Situation and Outlook report compiled by CALS emeritus ag economics professor Bob Cropp, there are less cows in the national dairy herd than last year, and the remaining cows are producing less milk on average. Added up, national milk production is lower than a year ago by 0.5 percent, and there are 6,000 less cows making the milk, according to the report.
Fortunately, Wisconsin managed to buck the national trend by boosting both the number of cows in the state herd and by increasing the productivity of its cows.
Cropp believes prices paid to dairy producers are likely to trend downward even in the face of decreased supplies of milk, although prices should remain historically strong.
Find the complete October Dairy Situation and Outlook report at the UW Understanding Dairy Markets web site, as well as further dairy analysis with Cropp and dairy analyst Mark Stephenson in their monthly news video.