According to the April USDA World Agricultural Supply and Demand Estimate (WASDE) report, the 2021 milk production projection was raised four million pounds from the previous month, primarily on an increase in dairy cow numbers. 2021 projected milk production equates to a 2.3% YOY increase from 2020 levels, which would be the largest growth rate experienced throughout the past seven years.

The 2021 dairy export forecasts were raised on both a milk-fat and skim-solids basis on higher expected shipments of cheese, whey and skim milk powder. 2021 dairy import forecasts were reduced on both a milk-fat and skim-solids basis on lower expected imports of milk proteins and other dairy products.

2021 projected dairy export volumes translated to 17.6% of total U.S. milk solids production, up from the 2020 record high level of 16.6%, while import volumes were equivalent to 3.4% of total U.S. milk solids production, on pace to reach a seven year low level. 2021 net dairy trade is projected to reach a record high level for the second consecutive year.

2021 butter, cheese, dry whey and nonfat dry milk price forecasts were all raised from the previous month on improved demand both domestically and in international markets.

The 2021 Class III milk price forecast of $17.10/cwt was raised $0.35/cwt from the previous forecast but remained 5.8% below the previous year price level. The 2021 Class IV milk price forecast of $15.15/cwt was raised $0.70/cwt from the previous forecast, finishing 12.3% above the previous year price level. The 2021 All-Milk price forecast of $18.40/cwt was raised $0.65/cwt from the previous forecast, finishing 0.4% above the 2020 price level.