But the slow down in milk production is contributed by less milk per cow. Milk per cow was lower for 16 of the 20 states and total milk production was lower for 14 of the 20 states. Four of the five top dairy states, California, Wisconsin, New York, and Minnesota, had less milk per cow and the fifth state, Pennsylvania had no change. Milk production has really slowed in the West due to poor milk production per cow. With a slow down in milk production, the production of dairy products also slows.
Reports are that dairy sales remain good.
With milk production slowing, and if sales stay strong, price depressing stocks of dairy products will be worked off allowing for stronger milk prices. The market is responding to these milk production and sales numbers. But more significantly has been the strengthening of cheese prices. Cheese prices last quarter of 2000 were near or below support. But in recent weeks prices have improved significantly.