July 25, 2007

 

US milk production on the rise amid global shortage supply 

 

 

Milk output in the US is up from last year for the sixth month in a row, according to a report published by the US Department of Agriculture (USDA).

 

Last week, the USDA that second quarter milk production in the US came to 47.4 billion pounds (21.59 billion kilos), posting an increase of 1.1 percent from the same period last year.

 

Milk yield in June totalled 14.2 billion pounds (6.45 billion kilos) in 23 states, up 1.2 percent from June last year, whereas the May yield of 14.9 billion pounds (6.77 billion kilos), was up by the slightly lower 1.1 percent from the same month in 2006.

 

January has the biggest jump between 2007 and 2006 by 1.8 percent of the total milk production.

 

The increase is even more surprising considering the number of cows on US farms went down to 9.13 million, 2,000 fewer than last year.

 

Arizona and Colorado performed well with increases from 2006 of 5.9 and 6 percent respectively during the April-June quarter.

 

Last month, Organic Monitor claimed that the supply of organic milk in the US is also increasing, to the extent that manufacturers now have a surplus to play with.

 

For instance, Whitewave Foods has developed a range of organic milk fortified with marine-sourced omega-3 fatty acids.

 

The successful US dairy yield is in contrast to other milk-producing countries where it is struggling to meet increased supply demands. Such in the case of EU where the region will possibly face milk shortage soon, according to Joop Kleibeuker, head of the European Dairy Association (EDA).

 

Global milk movers Australia and New Zealand have also experienced problems over recent years as ongoing effects of drought continue hurt the industry.

 

The surge in demand for milk is due to increasing populations in emerging markets and oil-rich nations.

 

Dairy production in Australia is expected to decline by four percent in 2007, while the current production growth rate in New Zealand is at its lowest level since 2000.

 

Kleibeuker also warned that a shifting agricultural focus towards bio-fuels could have a negative effect on the dairy industry worldwide, as cattle feed prices have already started to shoot up.