The United States Department of agriculture is lowering its milk production forecasts for last year and this year. It's due to slower expected growth in milk per cow. Farm Journal’s Tyne Morgan tells more in this week’s Dairy Report.
In Friday's World Agriculture Supply and Demand Estimates report, it announced the 2019 fat basis import forecast is unchanged from last month, but the 2020 import forecast is reduced on lower expected cheese and butterfat imports. However, the fat basis export forecasts is being raised on recent trade and strong sales of cheese and other dairy. For 2020, cheese, butter and whey price forecasts are reduced on weakness in demand and relatively high stocks. The 2019 all milk price is unchanged at $18.60 per hundredweight. But the all milk price forecast is reduced to $19.25.
There is good news about U.S. dairy exports. They were up in November for the third-straight month in a row.
U.S. dairy exports added up to 15.8% of U-S milk production in November. Exports were up 14% over last year. They totaled more than 536 million dollars, that's up 21% which is the most since April of 2015.
A stand out, exports of non-fat dry milk and skim milk powder were up a whopping 41% from a year ago. Industry leaders say that's thanks to both a competitive price advantage and the clearance of European Union intervention stocks earlier this year.