Dairy News

Vermeer dairy, Wilder, Idaho--Jake Putnam

Idaho Dairy Prices Down

Washington--Idaho dairy operators report falling milk prices and it looks like that's a trend that could continue into January says USDA Outlook Board Chairman Gerry Bange. He says part of the problem stems from the overproduction of non-fat dry milk overseas.

"The price of nonfat dry milk has come down very, very sharply," said Bange. "Somewhat weaker demand owing to the work economic situation right now so the demand for US nonfat dry milk has weakened.”

Class IV milk prices have fallen farther than expected and Bange says they could drop another eleven and a half percent next year. Cheese prices are also off and the average all milk price has been revised downward.

"We're seeing that fall down to $16.95 for 2009, thats down about eight percent from 2008,” said Bange. One bright note; feed and fuel prices have started to come down. Bange says the high fuel and feed costs this year will probably lead to an all-meat production decline next year, down more than one percent.

“We’re seeing tighter calf supplies,"added Bange. "Calf supplies have been somewhat restricted due to drought conditions in various parts of the country.”

Bange says beef, hogs and broiler prices will also be down next year as well.
“Some signs of weaker demand which may in fact relate to the economic situation where people are just adjusting their expenditures,” he said.