2014 U.S. Milk Production Projected Higher – Feb ‘14
According to the February USDA World Agricultural Supply and Demand Estimate (WASDE) report, 2014 U.S. milk production is projected at 205.7 billion lbs, a 0.1 billion lb increase from last month’s report. 2014 projected production of 205.7 billion lbs equates to a 2.2% YOY increase from 2013 production of 201.2 billion lbs. The projected 2.2% YOY increase in milk production would be over triple the 2013 YOY milk production increase. 2013 milk production of 201.2 billion lbs resulted in only a 0.4% YOY increase and a 0.7% YOY increase when adjusting for leap year. December ’13 milk production of 16,813 million lbs is a preliminary figure and may be revised later in February, providing a final 2013 milk production figure. As shown in the chart below, both the February USDA WASDE 2014 projected milk production and the projected YOY production increase are the highest figures since the 2014 projections originated in May ‘13. Increased projected milk production for 2014 is a product of expected higher cow numbers in the second half of the year. USDA’s Cattle report estimated dairy replacement heifers expected to calve during 2014 were up about 2 percent YOY, while the number of milk cows was fractionally below a year ago. Strong returns resulting from higher milk prices and moderate feed costs are expected to boost expansion later in the year. Milk per cow is projected to be unchanged YOY.