2020 Dairy Outlook

2020 Dairy Outlook

David Sparks Ph.D.
David Sparks Ph.D.
Just before Christmas we heard good news from the Idaho statehouse. Idaho agriculture is soaring. And the word from University of Idaho agricultural economist Dr. Garth Taylor was that “We broke all time record highs in net farm income and were the second highest in the cash receipts ever recorded.” The U of I financial report says two factors led to the rise in cash receipts. Milk prices increased by a whopping 19 percent, while potato prices are up 15 percent.

Acting World Ag Outlook Board Chair Mark Jekanowski says USDA is forecasting lower milk production for 2020.

“We reduced our milk production forecast by 400 million pounds and that's all reflecting lower milk per cow production growth. We kept the dairy herd size unchanged.” he adds. “Still, it's up year over year from 2019 by about 3.7 billion pounds.” Meanwhile, with dairy products….” imports of cheese and butter, we reduced a bit, but we're seeing very strong growth in exports of skim milk powder, especially to Mexico.” He says, although cheese and butter prices have been softening for a while,… “dairy prices are expected to be stronger than they were last year. Class three prices are up, class four prices are up, and the all milk price is forecast to be higher in 2019.

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