In early February, the USDA released its baseline projections for agriculture for the next 10 years.

Here’s what they predict for dairy:

  • Stronger milk-feed price ratios, improved management and dairy productivity gains will push milk output per cow higher and real costs lower.
  • Milk per cow per year is projected to hit 23,170 pounds by the 2012/2013 marketing year.
  • Milk production will continue to increase, as rising output per cow will offset declining cow numbers.
  • Domestic dairy demand will continue to grow slowly — just slightly faster than the growth in population.

For the complete report, which covers all aspects of agriculture, click here. The dairy projections start on page 59.