Animal Nutrition Market Update – Milk Price Forecast and Exports
Milk prices are forecasted to be about $0.60 per cwt higher than originally projected by USDA in the March World Agriculture Supply and Demand Estimates report. The all milk price has been elevated from an average of $17.00 to $17.60 per cwt. The price was elevated after USDA projected less milk to be produced.
Exports of U.S. dairy were up 9% by volume in 2018 compared to the previous year, setting a record according to the U.S. Dairy Export Council (USDEC). The sales value was up 2% from 2017 reaching $5.6 billion and putting the U.S. as the largest exporter of cheese in the world.
Despite those gains exports end the year on bad note. In December, sales volume declined 21% and the value of sales fell 9%. November saw sales volume was drop 12%, while fourth quarter 2018 sales volumes ended the year down 11%.