US milk production is being impacted by the bird flu virus, which was first detected in dairy cattle earlier this year. The outbreak began in Texas and Kansas, leading to a slump in milk output during March and April, according to USDA data.
Typically, production in these states would increase in spring, but this year’s decline is attributed to the flu outbreak, noted economist Betty Berning at the Global Dairy Outlook Conference in Chicago.
Texas experienced a significant 4.9% drop in milk production in March, compared to the national decline of 0.5%. The USDA reported the first-ever bird flu outbreak in Texas dairy cattle on March 25.
While the virus continues to spread, its overall impact on milk production is expected to be limited. Unlike birds, where flocks are culled to prevent the virus’s spread, many dairy cows can recover from the illness.
Milk futures have surged about 27% since the initial outbreak, with prices for cheese-making milk also rising due to tight global supplies.