Slowing Milk Output Per Cow in U.S.

WASHINGTON - Apr 9/08 - SNS -- Forecasts for 2008 milk production in the United States are reduced as growth in output per cow is forecast slower than last month, according to the latest supply and demand update from the USDA's World Agricultural Outlook Board.

Higher feed prices are expect to dampen output during the year. The first quarter cow herd forecast is raised but subsequent quarters are unchanged. Both Class III and Class IV price forecasts for 2008 are raised from last month.

Tighter supplies of milk and expected strength in both domestic and export commercial use underlie increased product price forecasts. Cheese prices are forecast higher as supplies remain tight. Despite current relatively heavy production and large stocks, butter prices are forecast higher as later year supplies are expected to tighten.

Nonfat dry milk prices are also forecast slightly higher as supplies tighten and export and domestic demand remains relatively firm. Whey price forecasts are raised slightly. The all milk price forecast for 2008 is raised to $17.65 to $18.15 per cwt.

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