U.S. milk production grew by 3.6% annually during the June-August period, while total milkfat production increased by 5.3%, as the average component composition of producer milk continues to increase. U.S. fluid milk sales were 1.7% lower than a year earlier during the same 3-month period.

U.S. average milk prices rose moderately in August from a month earlier to $20.90/cwt, while feed costs declined, resulting in a $0.58/cwt higher DMC margin for August of $11.52/cwt. Retail price inflation rose again in September as overall consumer prices increased by 3% from a year earlier. Dairy continued to resist inflationary pressures, with its average retail prices increasing by 0.7% from a year earlier versus 3% for all food and beverages.

Due to the ongoing government shutdown, some of the data normally reported in the Dairy Market Report is not available this month. This issue reports on the dairy data that is available.  View full report HERE.

Source: National Milk Producers Federation