Dairy Management Inc. (DMI), the planning and management organization that oversees the national dairy checkoff program on behalf of America’s dairy farmers and importers, has posted its 2022 annual report

Despite a better outlook for milk prices, corn and soybean meal price projections were also raised.

Despite weakening milk prices this summer, U.S. average prices for replacement cows moved higher, while strong beef prices continued to push market cow prices to an eight-year high.

Those looking for bright spots in this year’s dairy outlook have found their search increasingly challenging.

The preliminary estimate of overall June milk production compared to a year earlier was unchanged to slightly lower in the U.S., and up just 0.2% in the major dairy states, the fourth straight month output was up less than 1% from a year ago.

We’re still waiting on a formal announcement regarding a national hearing on Federal Milk Marketing Order (FMMO) modernization proposals.

The next critical step in the USDA’s “action plan” on proposed amendments to pricing provisions in the Federal Milk Marketing Order (FMMO) system is approaching.

Compared to last month, the USDA left the 2023 milk production estimate unchanged but reduced 2024 production expectations slightly. The outlook for prices continues to weaken.