Record Milk Prices Likely for 2022

U.S. milk prices are on pace for a record-setting year. National Milk Producers Federation (NMPF) Chief Economist Peter Vitaliano says this year will likely top 2014’s all milk price record by nearly two dollars per hundredweight. “We’re looking at $25.70 right now as the likely average that’s going to come in, that’s significantly higher,” he says.

Vitaliano says three consecutive records were set and broken during March, April, and May as feed costs and inputs elevated prices. “It’s receded a bit, but the monthly prices so far are still close to or above $26 a hundredweight.” He says the unprecedented prices in previous years would have created explosive expansions on farms but that’s not the case in today’s price environment.

Vitaliano says as a result retail dairy prices are now seeing significant growth with cheese 13 percent higher than last year and butter up 25 percent.

Editor’s Take:

Despite some increased cost of inputs, the record milk prices will still provide a very comfortable margin for dairy producers in 2022. As we have stated many times, net farm income is on track to be at or near record levels and the profitability of dairy is an important piece of that equation. So, armed with this knowledge, if you have dairy producers in your area, we strongly encourage you to reach out to them as soon as possible. Let them know about AgPack, tell them about your inventory on AgTruckTrader.com and, by all means, make sure you tell them about your fabulous parts and service departments.