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Sunday, December 17, 2017
 USDA Predicts Fewer Cows, More Milk in 2012  

Despite high feed prices, milk production continues to advance. USDA forecasts 2011 milk production at 196 billion pounds in 2011, virtually unchanged from October’s forecast. While third-quarter reported cow numbers were slightly lower than October projections, the U.S. herd size estimate remains at 9,200 thousand cows for this year and is expected to slip to 9,185 thousand cows in 2012. Milk per cow is forecast higher than October’s forecast, largely offsetting the lower than forecast third-quarter cow number. Production in 2012 is forecast at 198.4 billion pounds, unchanged from October. Next year, production per cow is forecast at 21,600 pounds, up from the 21,305 pounds expected this year. The increase in milk per cow forecast in 2012 and the additional milking day more than offsets the small projected decline in cow numbers, accounting for the overall increased milk production next year.

Milk equivalent imports on both a fats and skims-solids basis were unchanged from October projections for this year and 2012. Fats basis imports are forecast at 3.2 billion pounds in both 2011 and 2012. Skims-solids imports are forecast at 5.3 billion pounds this year, falling to 5.1 billion pounds next year. Commercial exports for 2011, on both a fats and skims-solids basis, were raised from October’s forecasts. Fats basis exports were raised to 9.2 billion pounds and skim-solids exports were increased to 33.1 billion pounds based on expectations of stronger lactose and whey exports. Commercial export forecasts for 2012 remain unchanged from October and are projected at 8.6 billion pounds, fats basis, and 31.9 billion pounds, skims-solids basis. Exports are expected to decline next year because of
higher milk production among competitors.

Commercial domestic use is forecast at 188.6 billion pounds, fats basis, in 2011. This forecast is virtually unchanged from October and continues the gradual upward trend observed over the last several years. In 2012, domestic use is expected to climb to 192.0 billion pounds fats basis, which would represent the strongest year-over-year rise since 2006. Commercial domestic use on a skims-solids basis is
forecast at 167.4 billion pounds, a slight downward revision from October, but still a robust recovery from 2010’s year-over-year decline. Domestic use is expected to continue upward in 2012, reaching 170.6 billion pounds and posting another strong year-over-year rise.

Overall, dairy product and milk prices are expected to be lower in 2012 after rising sharply in 2011. Cheese, butter, and whey prices for 2011 were raised slightly for November from October based on relatively strong foreign and domestic demand. Nonfat dry milk (NDM) prices were lowered slightly in this month’s forecast. The 2011 cheese price is forecast at $1.820 to $1.830 per pound and the butter price at $1.960 to $1.990 per pound. NDM prices are projected at $1.500 to $1.520 per pound and whey prices at 52.5 to 53.5 cents per pound.

Both domestic use and exports for whey have been robust this year. Next year, the major product prices are all expected to be lower than in 2011. However, the 2012 price forecasts, except for NDM, were revised upward slightly from October. The cheese price is expected to be $1.685 to $1.775 per pound; the butter price is forecast at $1.625 to $1.745 per pound. The NDM price is forecast at $1.355 to $1.425 per pound and the whey price at 48.5 to 51.5 cents per pound. The lower prices expected next year reflect larger domestic production, and stronger competition overseas, which will pressure exports.

Milk prices will be lower in 2012 compared with 2011. The Class III milk price, which is projected to average $18.30 to $18.40 per cwt this year, is forecast to slide to $16.70 to $17.60 per cwt in 2012. Likewise, the Class IV price will average $19.05 to $19.25 per cwt in 2011 and is forecast at $16.40 to $17.40 in 2012. The all milk price is forecast at $18.05 to $18.95 per cwt next year, lower than the $20.10 to $20.20 per cwt expected in 2011.

Source: Dairy Herd

http://www.dairyherd.com/dairy-news/Milk-production-continues-a-modest-advance-in-2012-133957808.html?ref=808
 


Posted on Tuesday, November 22, 2011 (Archive on Tuesday, November 29, 2011)
Posted by bsutton@adpi.org  Contributed by bsutton@adpi.org
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