rare! The cost of raising cows is soaring! The U.S. herd is losing its fastest rate in more than a decade

Zhitong Finance APP learned that due to the rising cost of raising, the number of dairy cows in the United States is declining at an unprecedented rate in more than a decade.

Nate Donnay, head of dairy market insights at StoneX Group, said the cost of feeding cows has been soaring, forcing dairy farmers to cut back on their herds. Chicago corn futures are understood to have risen 29 percent from a year earlier and hit an eight-year high in May.

Between June and September, the U.S. cattle herd fell by a combined 85,000 cows, the largest four-month decline since 2009. Milk production is currently lower than expected, rising just 0.2 percent in September from a year earlier and well below StoneX's forecast of 1.3 percent.

Therefore, a decline in milk production could mean higher dairy prices and exacerbate food inflation that has already hit the U.S.

Donnay said in a note: "We have never seen such a large decline, and there has not been such a serious decline in profit margins before. ”

In addition, Matt Gould, editor of the Dairy Market Analyst, also pointed out that the price of dairy products in the United States has been climbing recently, driven by the production report of the bullish market. At the same time, the global supply of milk is tight, especially the supply of butter is limited.