The U.S. Department of Agriculture has raised its milk production forecast and lowered its product price forecast for 2010.
Milk output is now project to hit 189.9 billion pounds in 2010, up 400 million pounds from last month’s estimate. In 2009, 189.3 billion pounds of milk were produced in the U.S.
The USDA’s “World Agricultural Supply and Demand Estimates” report, released Friday, was similarly bearish on milk prices.
“Product price forecasts are generally lowered from last month as milk production is forecast higher and demand is weaker than expected,” the report said. “The cheese price is reduced as stocks remain high.”
The all-milk price for 2010 is now forecast at $15.45 to $15.95 per hundredweight — down from the $15.55-to-$16.15 range the USDA had forecasted in March.
Source: “World Agricultural Supply and Demand Estimates,” USDA