United States US milk production is expected to decline in the first half of 2013 as farmers reduce dairy cow numbers in response to continuing high feed grain costs. Overall, US milk production is forecast to fall slightly in 2013 following an estimated rise of 2 per cent in 2012. An assumed improvement in the US economy is expected to lead to higher domestic demand for dairy products, particularly cheese, in 2013. As a result, US cheese production is forecast to increase in 2013 following an estimated rise of 2.4 per cent in 2012. Given this, and the expected slowdown in US milk production, the volume of milk available for butter and skim milk powder production is forecast to decline in 2013. US dairy The United States is a significant global exporter of skim milk powder with exports estimated to have increased by 80 per cent in the last four years to around 450 000 tonnes in 2012. With an estimated marked decline in US stocks of skim milk powder during 2012, the volume of skim milk powder available for export is forecast to fall in 2013. New Zealand While milk production increased by around 6 per cent year-on-year in the five months to October 2012, growth in production over the remainder of 2012–13 (June to May marketing year) is expected to slow reflecting lower farmgate prices and assumed average seasonal conditions. Overall, New Zealand milk production is forecast to increase by around 3 per cent in 2012–13 following a 10 per cent rise in 2011–12. Most of this increase in production is expected to occur in the South Island where dairy cow numbers have risen in recent years. This additional milk production is expected to be manufactured into whole milk powder for which processing capacity has expanded in the past few years. New Zealand exports of milk powders are forecast to increase in 2012–13 underpinned by continuing firm export demand, particularly from China.
United States US milk production is expected to decline in the first half of 2013 as farmers reduce dairy cow numbers in response to continuing high feed grain costs. Overall, US milk production is forecast to fall slightly in 2013 following an estimated rise of 2 per cent in 2012. An assumed improvement in the US economy is expected to lead to higher domestic demand for dairy products, particularly cheese, in 2013. As a result, US cheese production is forecast to increase in 2013 following an estimated rise of 2.4 per cent in 2012. Given this, and the expected slowdown in US milk production, the volume of milk available for butter and skim milk powder production is forecast to decline in 2013. US dairy The United States is a significant global exporter of skim milk powder with exports estimated to have increased by 80 per cent in the last four years to around 450 000 tonnes in 2012. With an estimated marked decline in US stocks of skim milk powder during 2012, the volume of skim milk powder available for export is forecast to fall in 2013. New Zealand While milk production increased by around 6 per cent year-on-year in the five months to October 2012, growth in production over the remainder of 2012–13 (June to May marketing year) is expected to slow reflecting lower farmgate prices and assumed average seasonal conditions. Overall, New Zealand milk production is forecast to increase by around 3 per cent in 2012–13 following a 10 per cent rise in 2011–12. Most of this increase in production is expected to occur in the South Island where dairy cow numbers have risen in recent years. This additional milk production is expected to be manufactured into whole milk powder for which processing capacity has expanded in the past few years. New Zealand exports of milk powders are forecast to increase in 2012–13 underpinned by continuing firm export demand, particularly from China.