More Milk Not Expected to Mean Lower Prices

The USDA is forecasting a two percent increase in milk production to more than 229 billion pounds.

Outlook Board Chair Seth Meyer said that doesn’t mean that prices will drop however.

“We do see, despite an increase in production, an increase in the all-milk price year over year.”

The all-milk price is forecasted to be about $18.50 per hundredweight for the 2018 dairy season.

Part of the reason for the continued good pricing, demand for butter and cheese has risen.

Dairy prices along with lower feed costs are also at a point where there will be no payouts through the Margin Protection Program, or MPP, at least as currently forecasted.