Dairy Supplies Continue to Push Higher

The USDA is forecasting record U.S. diary production in 2018, adding to already high supply levels.

"We have to figure out where we are going to get rid of it, obviously it is a storable commodity, but we still want to move the product out the door," USDA dairy analyst Shayle Shagam.

Shagam said with domestic demand expected to be soft to start the year, exports will be needed to reduce some of the dairy supply.  USDA expects that for 2018, exports increase about 2% and it will help absorb supplies that built up last year.

"Primarily higher sales of butter and cheese, skim solids and basis exports will increase about 4-percent with stronger exports of whey, lactose, NDM or skim milk powder, and the skim component of cheese," said Shagam.

With U.S. skim solid milk product exports expected to reach a record of 42.5 billion pounds this year.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com