Mike Pearson takes a look at the growing dairy sector and the consumers desire for it.

A new report from the USDA, 2023 per capita dairy consumption grew to 661-pounds per person matching the highest ever in 2021.

Cheese consumption soaredd to 42 .3 pounds, a rise of 7- pounds from 2022.

Also, butter consumption grew to 7-pounds in 2023.

The number show a growing preference to dairy in the American diet.

One reason is that butter and cheese fit into low carb diets and are tasty.

The Class 3 milk market has reflected these trends. The futures markets could stabilize a little lower and create an opportunity for cheese producers and dairy farmers.

The strong export markets are growing with increases in Mexico and South Korea.

Consumers are recognizing dairy affordability and nutritional value in the marketplace.

USDA expects a rebound in milk production in 2025. However, rising input costs are still a problem for producers which include labor costs, energy and feed costs which are requiring producers to manage the dairy business very closely.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.