Milk production continues to grow

Washington Ag Today October 20, 2010 There were more cows on dairy farms in the U.S. this September than a year ago and the USDA says the milk output per cow was up over a year ago too, resulting in a 3.6 percent increase in milk production last month compared to September of 2009. USDA says for the July through September quarter, production was up 2.7 percent over last year.

In Washington state September milk production was up 7.2 percent over last September from a dairy cow population that was up 14-thousand head from a year ago.

USDA Outlook Board Chairman Jerry Bange says there is a better outlook for dairy prices despite increased milk production this year.

Bange: “For 2010 we are expected to see an all-milk price 15 cents higher at $16.50 per hundredweight. Reason for that is we continue to see a very strong demand out there. One of the commodities is tight butter supply, strong demand. That is giving strong support to prices. So we are looking at this 16-50 for 2010.”

And Bange says its is pretty much the same story for 2011.

Bange: “So right now it looks like price for 2010 and price for 2011 will be very, very close with maybe a slight decrease in 2011 down to $16.45 per hundredweight.”

In a Third Quarter Market Snapshot report Northwest Farm Credit Services said dairy producers’ guarded optimism around increasing milk prices is met with careful watching of increasing feed prices, namely corn. It says most dairies are currently producing above breakeven levels.

I’m Bob Hoff and that’s Washington Ag Today on Northwest Aginfo Net.