Milk production is expected to fall this year and next due to lower cow numbers and output. Based on current prices, the department’s December supply and demand report reduced butter and cheese price forecasts for this year. The price of nonfat dry milk was raised, but the price of whey remained unchanged. Lower cheese and butter prices lowered the Class III and Class IV price forecasts.
The USDA reduced its expectations for cheese prices in 2024, while raising those for butter, nonfat dry milk, and whey. Because of lower cheese prices, the Class III price was reduced. Following higher butter and nonfat dry milk forecasts, the Class IV price was raised.
This year’s all-milk price fell a dime to $20.60 per hundredweight, while the 2024 forecast fell 55 cents to $20.25.
