California’s Dairy Industry in 2016
The California Dairy Statistics Annual for 2016 reported total milk production was down 1.1 percent, compared to the previous year, the number of dairy cows declined 0.6 percent, milk per cow was down 0.5 percent, and the number of dairies decreased by 3.2 percent. The twelve month average price paid to California producers for farm milk in 2016 was $15.03 per hundredweight (cwt.), which represents a drop of 2.4 percent from the previous year.
Milk Production
California milk production decreased each month through the first three quarters of 2016, compared to the same month in the previous year, and adjusting for leap day in February. However, milk production during the fourth quarter increased each month compared the same month in 2015. Total milk production for 2016 was 40.4 billion pounds, which is 429.6 million pounds less than the previous year. The five leading milk producing counties (Tulare, Merced, Kings, Stanislaus, and Kern) accounted for 72.4 percent of the state’s total milk production in 2016. Grade B milk production in 2016 recorded an increase of 73.1 percent (334.4 million more pounds), when compared to 2015. Milk production per cow in 2016 was estimated at 23,265 pounds and the total number of cows in the state was estimated to be 1.738 million.
Utilization
Milk Prices
During the first part of 2016, the milk price was depressed, as the overall supply of milk on a national and global level outpaced the demand for dairy products. During the latter part of the year, milk prices strengthened as the supply of milk in most key dairy export regions began to contract, with the exception of the U.S. In California, the annual average price paid to producers for farm milk in 2016 was $15.03/cwt., with the lowest average monthly price occurring in May at $12.89/cwt. and the highest average monthly price occurring in December at $17.55/ cwt.
Read the full 2016 California Cost of Milk Production Annual.