On Tuesday, USDA released its cattle inventory report. The report showed there are 4.75 million milk replacement heifers. According to Mike North of Commodity Risk Management Group, that’s more than half of the milking herd.
North told Market Rally Radio host Chip Flory the heifer number hasn’t seen numbers that large since 1985, and it has been growing at a pace of 2.5 percent year-over-year.
Milk production is likely to stay strong because of an “increase in components that offset the loss in fluid production.” He says this production isn’t going to end any time soon and U.S. dairy producers are going to have to start exporting their products.
“Demand at home is not going to get the job done,” said North.
By: Ashley Davenport
Source: Agweb.com