April 12, 2010

Forecast for US dairy prices takes a downturn

USDA's latest 2010 milk price average is forecast at $US15.70, down sharply from a December prediction of $US16.75.

World Ag Outlook Board chair Gerald Bange said USDA first thought milk production would fall due to culling. "What we have seen in recent months is that the size of the cow herd has not been reduced, as we expected," he said.

US cow numbers are actually trending upward, in response, Bange thinks, to this year's overall higher milk prices. They are still up 23% from 2009.