04/30/08 High feed costs and milk production

Washington Ag April 30, 2008 Dairy operators may not be expanding production as much as had been thought. In its most recent forecast analysts at USDA's Outlook Board cut 700-million pounds off their projections for this year's milk production. Outlook Board Chairman Gerry Bange says there is one factor behind that reduced forecast. Bange: "Slower growth in milk per cow, which is due we think in part to higher feed costs, and there may be, we are not sure, but there is some anecdotal evidence that suggests that maybe there is a little less BST use out there. We cannot confirm that but we have heard that. So we have the higher feed costs and maybe a little bit different way of feeding, maybe a little bit less use of BST, which is resulting in the slower growth in milk per cow." USDA's most recent numbers showed production per cow nationally in March was still 12 pounds more than in March of 2007. However, in Washington state production per cow last month was ten pounds less than in March of 2007. Dairy cow numbers in the state were up ten thousand over a year ago though and March milk production in Washington increased 3.8 percent above March of last year. USDA is now forecasting all milk production nationally this year to increase 2.3 percent over 2007. I'm Bob Hoff.