USDA Projects Deteriorating Milk Prices for 2015

Volatility_sign
Volatility_sign

The United States Department of Agriculture released its February World Agricultural Supply and Demand Estimate, with the 2015 all-milk price range reduced to $17.40 to $18.10. That’s a 35¢ to 45¢/cwt drop from January.

And that’s despite the fact that milk production for year is projected to be 200 million lb. less than USDA projected in January. “The milk production forecast for 2015 is lowered from last month as slower growth in output per cow more than offsets faster herd expansion,” say USDA dairy economists. The number of replacement heifers expected to calve this year is up 1%, and dairy cow numbers are at their highest level since 2009.

But the pricing issue gets complicated: USDA is projecting lower non-fat dry milk prices due to strong competition in export markets. While the cheese price remains unchanged, Class III price estimates were raised 10¢/cwt on the bottom end of the 2015 price range due to stronger whey prices. USDA now estimates Class III prices will come in at a range of $16.30 to $17.

You can read the full report here.

 

 

 

Latest News

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company
Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company

Travel to the rolling hills of Pennsylvania, and you’ll meet Hayley and Stephanie Painter who not only made the Forbes 30 under 30 list, but have also created one of the fastest growing yogurt company in the U.S.

"Boring" Technology Will Reshape Dairy Over the Next 10 Years
"Boring" Technology Will Reshape Dairy Over the Next 10 Years

Once a technology becomes a boring experience it means it has become proven, well-adopted, and easy to utilize. There are three "boring" technologies silently shaping the industry.

Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards
Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards

World Dairy Expo is delighted to announce the recipients of the 2024 Expo Recognition Awards. These individuals have made remarkable contributions to the dairy industry and their communities.

Meat Institute: Properly Prepared Beef is Safe to Eat; HPAI is not a Food Safety Threat
Meat Institute: Properly Prepared Beef is Safe to Eat; HPAI is not a Food Safety Threat

According to the Centers for Disease Control and Prevention (CDC) and USDA food safety experts, properly prepared beef is safe to eat and is not a food safety risk to humans.

BREAKING: Mystery Illness Impacting Texas, Kansas Dairy Cattle is Confirmed as Highly Pathogenic Avian Influenza Strain
BREAKING: Mystery Illness Impacting Texas, Kansas Dairy Cattle is Confirmed as Highly Pathogenic Avian Influenza Strain

USDA says genetic sequencing revealed the mystery illness impacting Texas dairies is the same strain of Highly Pathogenic Avian Influenza (HPAI) that's been in the U.S. The virus is carried by wild waterfowl.