Posted: 07.20.2011

Is it weather?  The quality of the feed?  Fewer dairies? Dairy farmers around Wisconsin have to be wondering what's going on with the latest trend of decreased milk production.

The U.S. Department of Agriculture announced that despite the fact that overall milk production went up in June (1.4%) - Wisconsin milk production went down 1.6%.  The state still has 4-5,000 more cows compared to a year ago - but per animal production went down approximately 3 gallons per animal.

Wisconsin was not alone!  Minnesota experienced nearly a 5% drop in June milk with 1,000 fewer milk cows.  Iowa also had milk production slip nearly 3%.  California on the other hand had a 3.4% increase in June milk - and more milk cows in place.

That's not the only area that's concerning to Wisconsin's dairy producers.  Feed costs continue to remain high, but the milk price trend in Chicago is fluctuating.  As of Wednesday morning - the six month average at the Chicago Mercantile Exchange group board was $18.80 per hundredweight.  The 12 month average, however, was only $17.63 a hundredweight or $1.51 per gallon at the farm gate for milk that goes into cheese.  That means dairy producers may have to prepare for a downturn in their pay price this winter.

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