USDA is projecting commercial use of dairy products will rise as much as 1.4% in 2010. In addition, exports are also expected to rebound from 2009. The projections are contained in the agency's Livestock Dairy and Poultry Outlook report. Bottom line, USDA expects the U.S. all-milk price to average from $16.20 to $16.90 in 2010. That compares to the 2009 average of just $12.81. That suggests a 28% improvement over 2009 prices.
Dairy exports are expected to rebound by as much as 25.7 billion pounds on milk equivalent skim-solid basis. But there are flies in the ointment. How the European Union disposes of its excessive butter and non-fat-dry milk will play a key role in how quickly export markets recover. The stronger value of the dollar versus the euro also will play a role.
Powered by iNet Solutions Group ©2011 All Rights Reserved.