May 29, 2008

US milk prices forecast to be robust through 2008
    
   

US milk prices for dairy farmers are expected to remain robust through 2008 and could average US$1 higher than last year's record prices, according to Robert Wellington, an economist with dairy cooperative Agri-Mark.

Prices paid for raw milk produced in May and paid in June will drop slightly, but would bounce back quickly and rise for the rest of the summer, according to Wellington.

Wellington said farm milk prices could go above US$1 per cwt in June before rising again in the months of July, August and September for a total increase of over US$4 per cwt by the end of the summer.

"If dairy products strengthen even further than expected, farm milk prices could rise by US$5 or more later this year," Wellington said.

Prices in 2009 are expected to average at about US$20 per cwt.