Posted December 6, 2013
USDA’s latest report of dairy product commercial
disappearance and its milk cost of production data have caused some confusion,
according to a Capital Press article available here. USDA’s Economic Research Service (ERS) said
they will update the cost of production data and issue revised October
estimates next month.
Jerry Dryer, editor of the Dairy and Food Market
Analyst, said the Third Quarter commercial dairy product disappearance was
strong, even though USDA’s data was “confused at best.” Dryer said consumers are “burning through
product faster that we’re producing it” with output only up around 1 percent,
but disappearance for all milk and dairy products being up 3.5 percent.
The USDA’s Cold Storage report also shows a
“record-setting drawdown” of butter stocks and cheese.
Strong milk prices could help dairy producers reach
record gross milk income for 2013, according to an article by Wisconsin Ag
Connection available here.
The USDA’s 2013 Farm Sector Income Forecast estimates
2013 U.S. dairy producer cash receipts from milk marketing at $40.05 billion,
up from $37.00 billion in 2012, and surpassing the previous high of $39.51
billion in 2011.
For more information on dairy pricing issues and dairy
policy in the next farm bill, reports from the Congressional Research Service
are available through the National Agricultural Law Center here
and here.
