07/24/07 Exports driving milk prices

The US Department of Agriculture has raised its estimate for the 2007 all-milk price. COLLINS "A record high $19.15. The previous all time record was $16.05." That's USDA chief economist Keith Collins who says world demand for dairy products is the driving force behind these record prices. COLLINS "We had the terrible drought in Oceania which has reduced available supplies of dairy products on the world market. We've also had less export products coming out of the European Union as they have changed their dairy program over the years and so the global price of dairy products has soared." He is forecasting a 2.2 percent milk production increase for next year. 2008 prices are expected to remain high but won't match this year's record $19.15. World Outlook Board Chairman Gerald Bange says $18.70 is the '08 all-milk forecast, the second highest price ever. BANGE "But that non fat milk price is still expected to remain very strong. Right now we've looking at a non-fat milk price of $1.68 per pound for the 2007 year and we only expect to see that drop a nickel next year." Non-fat dry milk, a commodity highly traded by the US, has seen a 90 percent price jump in the past year, again thanks mostly to demand. Today's Idaho Ag News Bill Scott