USA Dairy Price Forecast 2023
The USA dairy price forecast for 2023 is positive, with prices expected to remain elevated throughout the year. This is due to a number of factors, including:
- Strong demand: Demand for dairy products is expected to remain strong in 2023, driven by a growing global population and rising incomes.
- Tight supply: Milk production in the US is expected to be flat in 2023, due to high feed costs and other challenges facing dairy farmers.
- Government support: The US government has provided significant support to the dairy industry in recent years, which has helped to keep prices high.
Factors that could impact the USA dairy price forecast
There are a number of factors that could impact the USA dairy price forecast in 2023, including:
- The global economy: A slowdown in the global economy could lead to a decrease in demand for dairy products, which would put downward pressure on prices.
- Weather: Extreme weather events could disrupt milk production and drive up prices.
- Government policy: Changes in government policy, such as changes to trade tariffs or support programs, could also impact dairy prices.
USA dairy price forecast by product
The following is a more detailed forecast for individual dairy products:
- Milk: Milk prices are expected to remain elevated in 2023, due to the factors mentioned above. The USDA is forecasting an average all-milk price of $19.95 per hundredweight (cwt) for 2023.
- Cheese: Cheese prices are also expected to remain elevated in 2023, due to strong demand and tight supplies. The USDA is forecasting an average cheddar cheese price of $1.75 per pound for 2023.
- Butter: Butter prices are expected to be more volatile in 2023, but overall are expected to remain elevated. The USDA is forecasting an average butter price of $2.50 per pound for 2023.
- Whey: Whey prices are expected to be lower in 2023 than in 2022, due to increased supplies. The USDA is forecasting an average whey protein concentrate price of $0.70 per pound for 2023.
Implications of the USA dairy price forecast for dairy farmers and consumers
The elevated dairy price forecast for 2023 has both positive and negative implications for dairy farmers and consumers.
For dairy farmers, the higher prices will provide some relief from the high costs they have been facing in recent years. However, the tight supply situation is also expected to lead to higher feed costs, which could offset some of the gains from higher milk prices.
For consumers, the higher dairy prices will likely lead to higher prices for dairy products at the grocery store. However, the impact on consumers is expected to be relatively modest, as dairy products account for a relatively small share of the overall food budget.
The USA dairy price forecast for 2023 is positive, with prices expected to remain elevated throughout the year. This is due to a number of factors, including strong demand, tight supply, and government support. There are a number of factors that could impact the forecast, such as the global economy, weather, and government policy. However, overall, the outlook for the dairy industry in 2023 is positive.
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