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Exports, milk production shape 2012 dairy price forecast

The trend toward increasing exports of dairy goods from the United States may help support milk prices for dairy producers in the upcoming year, according to the December Dairy Situation and Outlook from Bob Cropp, emeritus professor of Agricultural and Applied Economics. Milk production, based on the number of cows in the national dairy herd and how much each cow produces, also weigh in the potential price picture for the dairy business.

“How milk prices play out in 2012 depends heavily upon the level of milk production and the level of dairy exports. Lower milk prices for the start of the year along with relatively high feed cost could stop the increase in cow numbers and dampen increases in milk per cow,” the report says.

Read the entire report here:
December Dairy Situation and Outlook