Milk production in the USA grows significantly in November

Just like in Europe, the United States is also producing much more milk than last year. There is currently no sign of a slowing growth, as the supply figures for November have further increased to nearly 5%. American dairy farmers in the 24 largest states delivered a total of 8.27 million tons of milk to their processors last month. This is an increase of 4.7% compared to the same month in 2024. Moreover, the lead is widening, as in October there was still a growth of 3.8%. States that significantly contribute to the growth are California (+10.4%), Texas (+4.9%), and Michigan (+4.6%). Among the large dairy states, only the growth in Wisconsin (+1.8%) lags behind the national average. The rising supply figures are a result of higher numbers of animals that are generally more productive. The number of dairy cows in November was 9.13 million, which is over 200,000 higher than a year earlier. Milk price under pressureThe high supply puts pressure on the milk price, although the decline this autumn is less severe than in the spring. The price of Class 3 milk, intended for cheese production, even slightly increased in November to $17.18 per CWT, which translates to about €33 per 100 kilograms of milk. Not a peak, but also not a bottom price by American standards. Due to the weak dollar, the converted price in euros gives a somewhat distorted picture. Butter cheaper than cheddar againOn the American dairy market, the increase in milk is noticeable. According to Stephen Cain, chairman of the national dairy farmers federation, there is 'a lot of milk' available for processors. This leads to higher stocks, partly due to lower consumer demand. Particularly the price of butter is under pressure, although other products are also moving downward. By mid-December, butter at a price level of $3,353 per ton is cheaper than cheddar for the first time since the summer of 2021. Slowly, the lower dairy prices are making their way to the store shelves. This is good news for President Donald Trump, who has made combating food inflation a key point in his policy.