U.S. milk production is forecast to reach 206 billion pounds in 2014 – a 5 billion pound increase over last year’s production, and will go on to reach 212.5 billion pounds in 2015 according to the latest World Agricultural Supply and Demand Estimates report issued by the U.S. Department of Agriculture (USDA). Despite this, the USDA forecasts that dairy prices will remain relatively strong with All-Milk prices maintaining an average above $20 per hundredweight. U.S. dairy export are expected to decline in both 2014 and 2015 due to Russia’s ban on imports causing increased competition on global markets between dairy exporting countries. Prices for both butter and whey are expected to increase this year over last year’s prices, with butter prices holding their strength through 2015 with an estimated average price of $1.72 per pound.
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