The USDA expects reduced milk per cow and a smaller herd to cause milk production to decline in 2023.
In its February supply and demand report, USDA lowered cheese prices because of large stocks and soft domestic demand. Nonfat dry milk and whey prices were also lowered because of increased export competition and lighter global demand. Butter prices were unchanged as higher earlier-year prices are likely to be offset by weaker prices later in 2023.
