WASHINGTON – The USDA’s Economic Research Service is predicting that milk output will rebound in 2002, after 12 straight months of year-to-year monthly declines that ended in October.
In a new situation report for the livestock, dairy and poultry sectors, dairy figures indicated November milk production was finally back at year-earlier levels.
Tight supplies of both quality forage and replacement heifers stymied what should have been an earlier expansion, the report said.
The shortage of replacement heifers continues, with prices of dairy replacements $300 higher in October than in any period before this year.
The report also showed that although relatively high milk prices and low feed prices has slowed the decline in dairy farm numbers, the exit of producers is a continuing trend.
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