# Declining Milk Production Leads to Higher Prices

> USDA lowered its 2021 and 2022 US milk production estimates on expectations of fewer cows and lower milk per cow. The September report also raised butter, cheese and nonfat dry milk estimates on improving demand, and raised the 2021 all-milk price forecast by 20 cents to $18.15/cwt and the 2022 forecast by 55 cents to $18.40/cwt.

- Date: 2021-09-14 · published 2021-09-14T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/45215-declining-milk-production-leads-to-higher-prices
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Tighter milk output and higher dairy product prices point to firmer dairy prices and better margins, which can support demand for dairy-linked feed ingredients such as DDGS and reduce pressure on dairy herd feeding.

## Read by commodity

- MILK: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2018-06-01 | [Milk prices continue to climb higher](https://feedsoft.ai/events/9758-milk-prices-continue-to-climb-higher.md) | -1.0% | -2.1% |
| MILK | 2026-04-21 | [Dairy outlook 2026: Higher milk production and stronger prices](https://feedsoft.ai/events/19713-dairy-outlook-2026-higher-milk-production-and-stronger-prices.md) | -0.0% | +0.6% |
| MILK | 2021-11-09 | [Production declines could yield $1 bump to milk prices - Brownfield Ag News](https://feedsoft.ai/events/44053-production-declines-could-yield-1-bump-to-milk-prices-brownfield-ag-news.md) | -0.3% | +3.9% |
| MILK | 2021-12-27 | [USDA Forecasts Lower Milk Production, Higher Prices - EDairy News English](https://feedsoft.ai/events/43588-usda-forecasts-lower-milk-production-higher-prices-edairy-news-english.md) | -0.1% | +10.1% |
| MILK | 2019-03-26 | [Milk production continues to slow](https://feedsoft.ai/events/60104-milk-production-continues-to-slow.md) | +0.1% | +5.8% |

## Sources

- air.certifiedagdealer.com: https://air.certifiedagdealer.com/declining-milk-production-leads-to-higher-prices

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