Figures released by World Agricultural Supply and Demand Estimates (WASDE) estimate US milk production at 208.4bn pounds (94.727m tonnes) was slightly higher than last month’s estimate of 208.3bn pounds (94.681m tonnes).

However, milk production estimates for 2016 declined from 212.4bn pounds (96.545m tonnes) in December’s report to 211.8bn pounds (96.272m tonnes) in this month’s report.

The all milk price (equivalent to Irish creamery average price) for 2016 is forecast between $15.35 and $16.15 (31.13-32.75c/l) down 60 cents (1.2 c/l) from the December projection.

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There is also an increase in US cheese imports and this, coupled with larger than expected stocks of cheese, are driving the reduction in cheese price forecast.

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Lower projection for US milk production in WASDE report

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