The USDA National Agricultural Statistics Service (NASS) reported 9.350 cows for May. While this is a 5,000-head increase from April, the number of cows decreased by 68,000 head year-over-year. The Livestock Slaughter report reveals 216,000 head slaughtered in May 2024. This is a decline of 33,000 head compared to the same period in 2023. Producers continue to optimize animal inventory and hold onto cows longer.

The USDA reports the average monthly fat test rose to 4.24% in April 2024 versus 4.12% in April 2023. This is an increase of 0.12% compared to the previous year. Milk protein test values have also risen to 3.32% in April 2024 from 3.28% in April 2023.

Total U.S. monthly milk production is 19.68 million pounds as of May 2024. This is a decrease of 172 million pounds from the same period last year. While producers have responded to market price pressures by decreasing the number of cows, total milk production has not fallen at the same rate due to increased efficiency. However, the milk supply is finally tightening.

Read more about dairy market conditions here.