Economic Review of Milk Costs in 2022 and Projections for 2023 and 2024

Bradley Zwilling

farmdoc daily, 2024, vol. 14, issue 14

Abstract: Higher costs coupled with higher milk prices resulted in positive cash returns but continued negative economic returns for Illinois dairy producers in 2022, according to figures summarized by the Illinois Farm Business Farm Management Association. The average net price received per 100 pounds of milk was $25.36, which was less than total economic costs of $26.49, but still higher than feed and cash operating costs of $21.14. The price received for milk in 2022 was $6.07 higher than 2021. On a per cow basis, total returns from milk were $6,376 compared to the total cost to produce milk of $6,589 per cow. Total returns from milk per cow increased from 2021. The net returns per cow in 2022 were a negative $213. Total returns have exceeded total economic costs only once out of the last ten years. During that same time period, total returns have exceeded feed and cash operating costs. Milk production per cow for all herds averaged 25,085 pounds. The average was 1,355 pounds more per cow than in 2021.

Keywords: Agribusiness; Agricultural Finance; Demand and Price Analysis (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ags:illufd:358274

DOI: 10.22004/ag.econ.358274

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