According to the April USDA World Agricultural Supply and Demand Estimate (WASDE) report, the 2022 milk production projection was raised by three million pounds, or 0.1%, from the previous month on higher projected dairy cow numbers. 2022 milk production volumes are currently expected to finish equal to previous year levels, reaching a 13 year low growth rate.

2022 dairy export forecasts were raised from the previous month on both a milk-fat and skim-solids basis on strong shipments of butterfat products, cheese, whey and skim milk powder. 2022 dairy import forecasts were reduced from the previous month on a milk-fat basis on lower expected imports of cheese and butterfat products while remaining unchanged on a skim-solids basis.

2022 projected dairy export volumes equated to 17.9% of total U.S. milk solids production, down from the record high level experienced throughout 2021, while import volumes were equivalent to 3.7% of total U.S. milk solids production, largely unchanged from the previous year. 2022 net dairy trade is projected to finish below the record high level experienced throughout the previous year but remain at the second highest level on record.

2022 butter and cheese price forecasts were raised from the previous month on tighter stocks and firm demand. Nonfat dry milk prices were raised fractionally however dry whey prices were lowered as U.S. prices are expected to become competitive internationally. The 2022 Class III milk price forecast of $22.75/cwt was raised $1.10/cwt from the previous forecast, finishing 33.2% above previous year price levels. The 2022 Class IV milk price forecast of $24.05/cwt was raised $0.35/cwt from the previous forecast, finishing 49.5% above previous year price levels. The 2022 All-Milk price forecast of $25.80/cwt was raised $0.75/cwt from the previous month, finishing 38.0% above the previous year price levels and reaching a record high level, overall.