The December milk production forecast is down from last month's estimates. Also decreasing is the forecast of milk per cow, but these are not the only changes made according to Agriculture Outlook Board Chairman Gerry Bange.
"We did reduce our estimate of milk imports 3.4 billion pounds, that's a reduction of about 5.6% primarily reflecting weaker butter imports," Bange says. "We are looking at non-fat dry milk CC removals in 2009 at 150 million pounds. That is up 100 million pounds from our previous forecast so we do see a fairly sharp increase from year to year. That would be an increase just short of 60%."
Bange says prices for all classes of milk have been lowered fairly sharply since last month.
"We're looking at a Class III price at $14.90 per hundredweight; a Class IV price of $11.20 per hundredweight and an all milk price of $15.35," Bange says.
Those prices according to Bange are down between 15% and 24% from last year.