Production continues to rise, even as prices continue to regress. USDA announced total output for the 23 major dairy states was up 5.5% in March from a year ago standing at 14.6 billion pounds, which was also six million pounds over February’s production. California leads dairy states in production, marketing 3.4 billion pound last month. New Mexico recorded the largest percentage increase with 663 million pounds, 15.1% over March 2005. Cow numbers are up, contributing to the production gains. Adding 124,000 head over March 2005, and 17,000 over last month, the 23 dairy states boast a herd of 8.22 million head.