# Supply-side effects on dairy industry will continue in 2022

> Dairy supply is contracting, with milk, cow and milk solids production falling into negative territory in October. US dairy exports reached a record 17.6 percent of milk solids production in the first ten months of 2021. Domestic consumption has been sluggish, while cheese production remains the preferred outlet for available milk.

- Date: 2022-01-03 · published 2022-01-03T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/4073-supply-side-effects-on-dairy-industry-will-continue-in-2022
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Lower milk output and record exports tighten dairy supplies, supporting milk prices and the demand outlook for dairy feed ingredients.

## Read by commodity

- MILK: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2022-01-05 | 1 | +12.2% | 24.2 | Contracting milk supply and record export share of milk solids tighten domestic availability, underpinning cheese and Class III prices. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2024-07-27 | [Dairy prices continue recent strength - Dairy Star](https://feedsoft.ai/events/6825-dairy-prices-continue-recent-strength-dairy-star.md) | +2.4% | +4.2% |
| MILK | 2022-01-13 | [Dairy and Milk Markets in 2021-2022](https://feedsoft.ai/events/43135-dairy-and-milk-markets-in-2021-2022.md) | -0.6% | +1.8% |
| MILK | 2019-10-25 | [Dairy Recovery Set to Continue Into Next Year - ProAg](https://feedsoft.ai/events/56558-dairy-recovery-set-to-continue-into-next-year-proag.md) | +7.7% | +9.1% |
| MILK | 2019-04-25 | [2019 Could Be Year Of Recovery For Dairy Industry - EDairy News English](https://feedsoft.ai/events/59729-2019-could-be-year-of-recovery-for-dairy-industry-edairy-news-english.md) | +1.3% | +2.6% |
| MILK | 2019-02-11 | [Dairy industry on its way to rightsizing - Brownfield Ag News](https://feedsoft.ai/events/60754-dairy-industry-on-its-way-to-rightsizing-brownfield-ag-news.md) | -0.1% | +6.8% |

## Sources

- eu.wisfarmer.com: https://eu.wisfarmer.com/story/news/2022/01/03/supply-side-effects-dairy-industry-continue-2022/9079207002/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.