The total number of all cattle and calves on Jan. 1, 2023, was estimated at 89.3 million head, about 2.8 million fewer than the previous year. This marks the fourth year of contraction for aggregate beef and dairy cattle inventories, in the ninth year of the current cattle cycle – the cyclical expansion and contraction of the national cattle herd over time.

• 2023 DMC milk enrollment percentage up
• House farm bill hearing held at World Ag Expo
• Gillibrand announces 2023 Farm Bill dairy priorities
• Coming up

The latest USDA Cattle Inventory report, released on Jan. 31, confirmed another year of contraction in the beef cattle industry.

The USDA’s monthly World Ag Supply and Demand Estimates (WASDE) report, released Feb. 8, reduced both 2022 and 2023 U.S. milk production estimates from last month, but also cut 2023 price projections.

October 2022 “mailbox” prices averaged about $1.04 per cwt less than announced average “all-milk” price for the same month.

As of Jan. 1, 2023, there were 29.5 replacements expected to calve for every 100 cows currently in the herd, the smallest percentage since 2001.

The number of milk cows on U.S. farms was estimated at 9.4 million head in December, the smallest number since February.

Update highlights

• February 2023 Class I base price on the move again
• December cull dairy cow marketing higher
• Inflation hit dairy aisle in 2022
• November fluid sales stayed on trend
• GDT index dipped
• Coming up

The end of January brings the enrollment deadline for the 2023 Dairy Margin Coverage (DMC) program and milk production data to settle fourth-quarter 2022 Dairy Revenue Protection (Dairy-RP) policies.