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WASDE Looks to 2010 for Good Dairy Prices

13 May 2009

US - Monthly World Supply and Demand Report from USDA on Tuesday included the first estimate of milk production for 2010.

The Outlook Board expects production to decline from the second-half of this year into 2010 as producers respond to the low prices buy culling cows, reports Brownfield. Production per cow will slip for the remainder of 2009 then start to improve slightly in 2010.

According to Brownfield, milk production for 2009 is now estimated to be 187.7 billion pounds and 2010 production is projected at 186.8 billion pounds.

The report estimates Commodity Credit Corporation will purchase a total of 194 million pounds of nonfat dry milk and 5 million pounds of butter in 2009. They project no purchases in 2010. Commercial exports are expected to improve next year as the global economy improves leading to higher milk prices.

TheCattleSite News Desk


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