These two charts show you the past and current trends in 1:[Chart1] the number of cows, and 2:[Chart 1] the production per cow for the United States (yield adjusted to reflect 30 day months) and 3:[Chart 2] the comparison with productivity (rate of change in milk production) and Class 3 milk price.
Looking at yield/cow or productivity gains by U.S. dairy producers, it is clear that production adjustments must come about through the number of milk cows. With cow numbers now declining and a slowdown in milk productivity, the expectation is for milk prices to be remain strong for the coming six months. The CME class 3 milk futures price is projecting the mid $18's for the next six months..
