Executive Summary U.S. dairy cow slaughter figures provided by USDA were recently updated with values spanning through Feb ’18. Highlights from the updated report include:

• U.S. dairy cow slaughter increased on a YOY basis for the 13^th consecutive month during Feb ’18, finishing up 3.0% when normalized for slaughter days. Slaughter rates reached a 33 year seasonal high for the month of February.
• YOY increases in dairy cow slaughter continue to be led by the Northwestern United States. Dairy cow slaughter within Standard Federal Region 10 (Alaska, Idaho, Oregon and Washington) finished most significantly higher, up 14,000 head from last year.
• Dairy cow slaughter within Standard Federal Region 9 (Arizona, California, Hawaii and Nevada) declined on a YOY basis for just the second time in the past 14 months, finishing down 12,300 head. The YOY decline was the largest experienced in over three years on a percentage basis.

Additional Report Details According to USDA, Feb ’18 U.S. dairy cow slaughter declined 1.9% MOM but remained up 3.0% YOY when normalized for slaughter days, finishing at a 33 year seasonal high for the month of February. The YOY increase in U.S. dairy cow slaughter rates was the 13^th experienced in a row. The MOM decline in slaughter rates of 1.9% was smaller than the ten year average January – February seasonal decline of 3.5%. ’16-’17 annual dairy cow slaughter rates increased by 2.5% YOY, finishing at a four year high, while ’17-’18 YTD slaughter rates are up an additional 4.1% throughout the first five months of the production season. Despite recently experienced increases in slaughter rates, the Feb ’18 U.S. milk cow herd increased to a 22 year high. As of Feb ’18, the total U.S. milk cow herd stands at 9.410 million head, which is 45,000 head more than February of last year. The most significant MOM decline in dairy cow slaughter was exhibited within Standard Federal Region 9 (Arizona, California, Hawaii and Nevada), followed by Standard Federal Region 3 (Delaware, Maryland, Pennsylvania, Virginia and West Virginia). Seasonal figures for Standard Federal Region 5 (Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin) were released for the first time since 2015, finishing 7,700 head above Feb ’15 figures. Slaughter figures for Standard Federal Region 5 were not available from Feb ’16 until Dec ’17 to avoid disclosing data for individual operators. The largest YOY increase in dairy cow slaughter was exhibited within Standard Federal Region 10 (Alaska, Idaho, Oregon and Washington), while YOY slaughter rates within Standard Federal Region 9 (Arizona, California, Hawaii and Nevada) declined most significantly. Dairy cow slaughter within Standard Federal Region 9 (Arizona, California, Hawaii and Nevada) declined 10.1% MOM and 11.9% YOY when normalized for slaughter days, finishing lower on a YOY basis for just the second time in the past 14 months. The YOY decline in slaughter rates experienced within Standard Federal Region 9 was the largest experienced in over three years on a percentage basis.