American type cheese production was down 4.6 percent, whereas mozzarella cheese production was up 4.8 percent. Total cheese production fell just 0.1 percent. USDA reported this week many domestic producers and handlers feel that the weakening cash price is reflective of lower priced imported butter being offered. Imported butter is reported to be entering the U.S. within and above quota levels. I would argue this type of cooling off is good for the dairy industry since it lessens the chance of a quick run up in prices, followed by a prolonged crash and burn scenario.
Farmers make more money from the market with a sustained, yet moderate, price increase.
I have been traveling the country and have been speaking to many dairy producers and feed company executives. I have a mixed bag of results from these conversations. Many are reporting the cows in the west went through a rough winter of rain and mud. The Northeast is still suffering the effects of poor forage from last fall. We have only just now started to plant corn and harvest green chop in the Northeast.