As of Jan. 1, 2023, there were 29.5 replacements expected to calve for every 100 cows currently in the herd, the smallest percentage since 2001.

The number of milk cows on U.S. farms was estimated at 9.4 million head in December, the smallest number since February.

Update highlights

• February 2023 Class I base price on the move again
• December cull dairy cow marketing higher
• Inflation hit dairy aisle in 2022
• November fluid sales stayed on trend
• GDT index dipped
• Coming up

The end of January brings the enrollment deadline for the 2023 Dairy Margin Coverage (DMC) program and milk production data to settle fourth-quarter 2022 Dairy Revenue Protection (Dairy-RP) policies.

Two years of drought have had a major impact on hay production, according to the recently released Dec. 1 hay stocks from the USDA.

Based on the most recent U.S. Drought Monitor data, the impact of drought continues to be a theme into the new year even as rains bring relief to beef cattle producers in parts of the West.

The USDA’s January World Ag Supply and Demand Estimates and Crop Production reports provide production and price forecasts.

Dairy heifer and hay export volumes were weaker in November.

The enrollment period for 2023 DMC and Supplemental DMC programs closes on Jan. 31.

The number of milk cows on U.S. farms was estimated at 9.42 million head in November, the highest number since August 2021.