News

Dairy expansion should continue in 2015

The monthly Livestock, Dairy and Poultry Outlook from USDA on Friday projecting that farm milk prices should peak-out this month and then start declining.  But cheap feed should keep the milk-to-feed ratio at a level conducive to herd expansion.

The U.S. dairy herd is expected to increase from 9.26 million head this year to 9.335 million in 2015.  Production per cow is projected to average 22,255 this year increasing to 22,790 in 2015.  As a result, total U.S. milk production for 2014 is estimated to be 206.1 billion pounds and 212.8 billion in 2015.

Cheese prices are projected to average $$2.16 to $2.17 this year falling to $$1.695 to $178 in 2015.  Butter is pegged at $2.22 to $2.25 for 2014 and $1.68 to $1.80 in 2015.  Nonfat dry milk will go from $1.76 to $1.78 this year to $1.45 to $1.52 next year.  Whey should average 65 to 66 cents per pound this year and 56 to 59 cents in 2015.

Class III milk is projected to average $22.40 to $22.50 for 2014 falling to $17.25 to $18.55 in 2015.  Class IV goes from $22.40 to $22.60 this year to $17.45 to $18.45 next year.  The 2014 all milk price is estimated at $24.10 to $24.20 and 2015 is projected to range from $18.95 to $19.95 per hundredweight.