Milk supplies continue to decline as US farmers battle increased costs and tight margins. Production in the US during August totaled 19 billion pounds with production per cow down a pound from last year.

USDA says the dairy herd size was cut by 16,000 head from last year but unchanged from the prior month.  Farmers have reduced their herd size every month since May this year.

South Dakota increased milk production by six percent in August while New Mexico (-8%) and Kansas (-4.3%) had the greatest declines.  Michigan dairy cows had the highest output at 2,340 pounds per cow, more than 300 pounds above the national average.