DAIRY MARKET REPORT VOLUME 27 | ISSUE 1
1/23/2023
OVERVIEW While milk production growth continues to be sluggish and farmer margins are improving, USDA analysis shows total domestic use of milk increased by 2.8 percent on a milk equivalent, total milk solids basis during September-November. Because this was faster than milk production, and faster than milk solids production grew during the same period, stocks of the major dairy products have continued to drop. The Dairy Margin Coverage Program margin finally recovered in November to a level slightly above the maximum $9.50/cwt Tier 1 coverage level, the first time in 2023 that farmers insured at the maximum level didn’t receive a payment.
COMMERCIAL USE OF DAIRY PRODUCTS Year to date through November, domestic commercial use of butter is up 7.2 percent over the same period in 2022, yogurt is up by 3.6 percent, and American-type cheese by 2.2 percent; meanwhile, domestic use of all cheese other than American-type is down over a year ago by 0.6 percent, and total fluid milk is 1.4 percent lower. For
DOMESTIC COMMERCIAL USE
the aggregate measures, domestic use of milk in all dairy products rose year-over-year during the year’s first 11 months by 1.5 percent on a milk equivalent, milkfat basis, and by 3 percent on a milk equivalent, nonfat milk solids basis.
SEP-NOV 2023
SEP-NOV 2022
2022-2023 CHANGE
PERCENT CHANGE
(million pounds) Total Fluid Milk Products
10,967
10,951
16
0.1%
Yogurt
1,167
1,132
35
3.1%
Butter
566
537
28
5.3%
American-type Cheese
1,396
1,363
33
2.4%
All Other Cheese
2,021
2,028
-8
-0.4%
Total Cheese
3,417
3,392
25
0.7%
Dry Skim Milk
156
196
-41
-20.7%
All Products (milk equiv., milkfat basis)
57,448
56,764
684
1.2%
All Products (milk equiv., skim solids basis)
46,322
44,710
1,612
3.6%
All Products (milk equiv., total solids basis)
49,845
48,486
1,359
2.8%