03/24/08 Milk production and price forecast

Idaho milk production in February was eleven percent higher than the same month last year but it was down compared to January of this year. National Ag Statistics Service says 940 million pounds of milk were produced last month by the state's 534 thousand cows. The herd number is unchanged from January but 30 thousand head more than February of 2007. Nationally, milk production for this year is forecast to increase and that will push the all milk price down for its record high according to USDA Outlook Board chairman Gerald Bange. BANGE "We did increase our forecast for 2008 this month to $17.60. This is up 40 cents from our previous forecast reflecting fairly strong cheese prices offset some by lower whey prices." The all milk price of $17.60 is about a dollar-50 under last year's record price. BANGE "I should add that would in fact be the second highest price ever. The $19.13 of course was record high and the third highest price of course occurred in 2004 at $16.05." But dairies in Idaho and across the nation are facing pressure from higher livestock feed costs. Bange says that is likely to slow the rate of gain in milk per cow. Voice of Idaho Agriculture Bill Scott