US milk production growth continues to improve, with national milk supplies rising 1.6% YOY in August according to the USDA. The overall increase in August came despite a 0.1% YOY decline in cow numbers as yields increased 1.7% YOY – the largest expansion since June 2021. At 9,427m, cow numbers were up by 8,000 relative to the prior month but still 11,000 head below the same month in 2021.

Among major producing states, August milk production in Wisconsin rose by 1.1% YOY. California rose 2% YOY, while Washington posted the largest absolute decline among all states – down 4.2% YOY, which was the 28^th consecutive monthly contraction. Milk production in Idaho, South Dakota, Texas and Iowa continued to improve at impressive rates. Supplies continued to decline in New Mexico (-3.3% YOY), Florida (-10.4% YOY), Ohio (-2.5% YOY) and Michigan (-1.5% YOY).