Despite Production Increase, Milk Prices May Increase In 2020

What can the dairy industry expect in the coming year on the national level?

USDA analyst, Jerry Cessna, expects slow growth in milk production in 2020, at roughly 1.4%.  Cessna said despite more output, milk prices this year could be a little higher than they were in 2019.

“We should see continued growth in domestic consumption we have relatively low beginning stocks at the beginning of the year that should contribute to the higher prices,” Cessna continued.  “We should have lower imports due to US tariffs being applied on some dairy products from the European Union but we expect stronger exports that we had last year.”

Cessna is forecasting the all milk price this year to average $18.85 a hundred weight, about 25 cents higher than last year.