Milk production in the 24 major states continued its downward trend in December, totaling 18.0 billion lbs., a 0.4% decline from the previous year.
Milk production in the 24 major states continued its downward trend in December, totaling 18.0 billion lbs., a 0.4% decline from the previous year. This marks a continuation of the slight contraction seen in November, where revised production figures showed a 0.3% year-over-year decrease.
Slight Contraction Continues
Despite these declines, the overall number of milk cows in the 24 major states increased by 17,000 head compared to December 2023 yet decreased by 8,000 head from November 2024.
Per-Cow Output Drops
One contributing factor to the lower production was a decline in milk output per cow. In December, the average production per cow in the 24 major states was 2,020 lbs., 11 lbs. less than in December 2023.
Regional Trends Diverge
Regional differences played a significant role in shaping the December milk production statistics. While some states, like Idaho and Texas, saw production increases due to rising cow numbers and improved milk output per cow, others, including California and Arizona, reported notable declines.
California, the nation’s largest milk-producing state, saw its December production drop by 6.8% compared to the previous year, a decline largely attributed to reductions in herd size and lower per-cow output. In contrast, Texas increased production by 7.5%, fueled by a growing dairy herd and strong per-cow yields.
The December report also reaffirmed a broader industry trend: the slow but steady contraction of milk production in some traditional dairy strongholds, while newer dairy regions continue to expand. States in the Midwest and Northeast, including Wisconsin and Pennsylvania, maintained relatively stable production levels, whereas the West and Southwest experienced more volatility.
Industry Outlook
Looking ahead, while demand for dairy products remains steady, cost pressures—particularly feed and labor expenses—continue to challenge profitability. Additionally, global economic conditions and export markets will play a key role in shaping the industry’s trajectory. With milk prices fluctuating and input costs remaining elevated, many producers are assessing strategies to enhance efficiency and productivity without significantly expanding herd sizes.
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