US milk production continues to improve, with supplies rising 1.3% YOY in January according to the USDA, a 5-month high. The overall increase was a result of a 0.4% YOY rise in cow numbers while yields were up 0.9% YOY. At 9,405m, cow numbers were up by 9,000 head relative to the prior month and were 38,000 head above the same month in 2022. The government made big revisions in historical data – the agency “lost” 25,000 cows between August and December last year with some additional revisions going back to April 2022.

Among major producing states, January milk production in Wisconsin rose by 1.6% YOY and California was flat. Milk production in Idaho, South Dakota, Texas, Iowa and Kansas continued to improve at impressive rates. Supplies declined in New Mexico (-4.1% YOY) and Florida (-11.4% YOY). Output in Washington has been in decline since May 2020, and was down 1.9% YOY in January.