11/22/05 USDA`s dairy price predictions

USDA has increased its forecast for milk production in 2005 and in 2006. Gerald Bange is chairman of USDA's World Agricultural Outlook Board. BANGE "We're looking at the production of 176.9 billion pounds for the 2005 year. That's an increase of 200 million pounds and looking at the 2006 year a production of 181.5 billion pounds." So why did USDA increase the totals both year's by 200 million pounds? BANGE "We're seeing cow numbers continue to grow and we're seeing output per cow continue to rise." Idaho has contributed to that growth and just recently moved into fourth place among all states for milk production. Bange says even though demand remains strong the all milk price for this year is forecast at $15.15 to 15.25 per hundredweight. BANGE "We're estimating the 2006 all milk price at $13.60 cents, that's a decrease of 20 cents from our previous forecast." And that's down about $1.60 from 2005. Primary reason for that is an expected lower Class III price due to lower cheese prices. Voice of Idaho Agriculture Bill Scott