Economic Review of Milk Costs in 2023 and Projections for 2024 and 2025

Lower milk prices coupled with slightly lower costs still resulted in positive cash returns but continued negative economic returns for Illinois dairy producers in 2023, according to figures summarized by the Illinois Farm Business Farm Management Association. The average net price received per 100 pounds of milk was $20.84, which was less than total economic costs of $24.23, but still higher than feed and cash operating costs of $18.42. The price received for milk in 2023 was $4.52 lower than 2022. On a per cow basis, total returns from milk were $4,794 compared to the total cost to produce milk of $5,552 per cow. This resulted in a net return of negative $758 per cow in 2023. Total returns from milk per cow decreased from 2022 and have exceeded total economic costs only once out of the last ten years, although they have consistently exceeded feed and cash operating costs during this period. Milk production per cow for all herds averaged 22,981 pounds in 2023, a decrease of 2,104 pounds per cow compared to 2022.