Friday, December 11, 2009


USDA publishes the "World Agricultural Supply and Demand Estimates" (WASDE) regularly. The one released yesterday, December 10, 2009 states for dairy:

The milk production forecasts are raised for 2009 and 2010. Dairy cow liquidation has been slower than expected, and improving milk prices in 2010 are expected to diminish the rate of decline in cow numbers. Dairy exports for 2009 are raised slightly, reflecting third-quarter strength in cheese and nonfat dry milk demand. Import forecasts are lowered for 2009. Fatbasis ending stocks are forecast higher for 2010. Although milk production is forecast higher than last month, improving demand is expected to support prices for most products. Prices for cheese, nonfat dry milk, and whey are forecast higher, but butter prices are forecast slightly lower. The Class III price forecast for 2009 is raised from last month and both Class III and Class IV prices are forecast higher for 2010. The all milk price is forecast at $12.70 to $12.80 per cwt for 2009 and $16.35 to $17.15 for 2010.

A year ago WASDE said:

The 2008 all milk price forecast is unchanged this month, averaging $18.30 to $18.40 per cwt, but the 2009 forecast is lowered to $14.95 to $15.75 per cwt.


  1. I think at these prices a lot of cows in this country might soon catch the "moo flu" for a few days - of course you can't ship milk from cows with the "moo flu". I'm thinking the moo flu will start in the west and be an extremely contagious virus... most dangerous and possibly deadly to the status-quo. The moo flu is likely to start with larger farms and spread like wild fire, as once started it's very hard to contain.
    Yes it's true, a good outbreak of the "moo flu" will cause much to-do. I'm sure my cows will catch it, how about you?
    Money Pit Acres

  2. I think you may be right. Our cows aren't in the right group to get the vaccine from the government. So they would get sick too!