U.S. Milk Output Forecast Higher

WASHINGTON - Feb 9/07 - SNS -- Milk production forecast for the United states are expected to be higher than initially thought, according to the latest supply and demand forecasts from the USDA's World Agricultural Outlook Board.

The recent Milk Production and Cattle reports indicated that the dairy herd remains above last year and producers reported a slightly larger number of replacement dairy heifers.

Thus, forecast cow numbers are increased from last month, but the increase will likely be tempered by the recently announced herd buyout by Cooperatives Working Together and higher feed costs.

The 2007 forecast continues to assume a declining cow herd from the previous year, albeit at a slower pace than forecast last month.

With a slight increase in milk per cow growth and higher overall cow numbers, the milk production forecast is increased 1.3 billion pounds from last month. Despite higher production, milk prices are forecast higher.

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