US milk production continues to growth albeit at a slower pace, with national milk supplies rising 0.5% YOY in March according to the USDA.

The overall increase was a result of a 0.3% YOY rise in cow numbers while average yields per cow improved just 0.1% YOY. USDA keeps finding more cows in its monthly survey despite other signals in culling and availability of young stock that which puts some cloud over the split between cow and yield effects on output.

At 9,435m, cow numbers were up by 6,000 head over the prior month and 31,000 head above the same month in 2022. This time, the government made revision to historical national dairy herd data and found 12,000 more cows in Feb-23 and an additional 2,000 cows in Jan-23.

Among major producing states, March milk production in Wisconsin rose by 0.4% YOY and California was down 2% YOY. Milk production in Idaho, South Dakota, Texas, Iowa, New York, Michigan and Kansas continued to improve at impressive rates. Supplies continued to decline in New Mexico (-4.4% YOY) and Florida (-5.5% YOY). Output in Washington fell YOY in every single month since May 2020, down 1.6% YOY in March alone.