Source: Iowa State University
The USDA Milk Production, Disposition and Income Summary for 2024 just released contained some interesting statistics. Milk production decreased 0.2 percent in 2024 to 226 billion pounds. The production per cow, at 24,178 pounds, was 61 pounds above 2023. The annual average number of milk cows on farms was 9.34 million head, down 42,000 head from 2023.
Cash receipts from marketings of milk during 2024 totaled $50.7 billion, up 10.5 percent from 2023. Producer returns averaged $22.56 per hundredweight, 10.7 percent above 2023. Marketings totaled 225 billion pounds, down 0.2 percent from 2023. Marketings include whole milk sold to plants and dealers and milk sold directly to consumers.
An estimated 985 million pounds of milk were used on farms where it was produced, 1.1 percent less than 2023. Calves were fed 92 percent of this milk, with the remainder consumed in producer households.
Iowa had 243,000 milk cows identified and their per cow production was 24,749 pounds of milk and 4.44 percent butterfat. That totals 6,014 million pounds of milk and 267 million pounds of fat. These numbers are important because the report shows Iowa processors showed a $4.93 return per pound or milk fat. Nation wide the return was $5.32 per pound. The gross producer income from milk exceeded 1.3 billion dollars.
This information will help consumers understand the changes in the butter section of the dairy isle at the grocery store. The dairy industry is witnessing an intriguing trend: butterfat exports are running at more than double the pace compared to the past two years. This is an impressive growth trajectory, and it raises important questions about the potential future of butterfat supply.
The combined value for individual milk components has accounted for more than 90 percent of the total minimum amount paid to producers. Even with these incentives, there is not enough butterfat being produced to meet domestic butter consumption. On the export side, the large difference between the U.S. price and world prices still north of $3.20 per pound will keep international demand strong despite any impact that tariffs might have.
In 2025, U.S. butter prices for consumers are projected to average around $2.445 per pound for consumers. While this is lower than the 2024 average of $2.89 per pound, it’s still significantly higher than pre-2024 levels.
