Even though this is the eighth consecutive month that US milk production has increased by more than 2%, the increase was still below the forecasted 2.5 - 3.2%. This is due to severe weather cutting production in some areas.

The US dairy herd increased by 9,000 cows in January to 9.308 million. This is 96,000 extra cows compared with this time last year.

After holding up much better than prices in the EU or New Zealand last year, US milk prices have fallen sharply in January to below production cost. This may curb the expansion this year.