12-19 NWR Dairy Outlook

12-19 NWR Dairy Outlook

David Sparks Ph.D.
David Sparks Ph.D.
This is your Northwest report for Monday, December 19 I'm David Sparks, and those of you in the dairy business in the Northwest, and there are a lot of you, you should know that In December's dairy outlook the demand for US dairy products, coupled with trimmed production estimates for 2016 and 2017, means increased price projections from USDA. "100,000,000 pounds in 2016 and 200,000,000 pounds in 2017 but still growth year after year so more than 4.4 billion pounds of additional production in 2017." World Agricultural Outlook Board chair Seth Meyers says expectations for specific dairy products runs the gamut. "Expectations for cheese are higher so despite large stocks of cheese, strong demand is putting some support underneath those prices." That's a price that has increased three cents from the previous month. Similar price adjustments up were noted for butter, nonfat dry milk and dry whey. Myers says that while cheese and butter demands are strong domestically, the other dairy categories are receiving increased international demand. "So when you put this into the milk context, pretty modest increase of about five cents on the all milk price of $2017-$6 and $.10 but we are now up to $17.25 for the all milk price in 2017."

And continuing to follow the story associated with the 21st Century Cures Act involving rural opioid and heroin addiction, a recent study shows the growth in drug-affected newborns is faster now in rural areas than in urban centers.

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