The latest WASDE forecast for milk production in 2014 has been revised upwards to 204.6 billion pounds, a 1.4% from the 201.8 billion pounds forecast for this year, and a 2.1% increase on 2012 production. This year’s prices for non-fat dry milk have been revised upwards due to strong international demand. Meanwhile prices for cheese and butter price forecasts have been revised upwards for his year but in 2014 are expect to fall due to the expectation that milk production will increase. Milk price forecast for both Class III and Class IV have been lowered by 5cents and 10cents respectively for the current year and prices are expected to ease further in 2014. The all milk price is forecast to be in the range of US$18.85 to $19.85 per cwt this year.
