Overall, milk production is forecast to grow 2.3 percent. W hat this forecast reflects is a strong resurgence in milk production refueled by high milk prices in 1998, a return of normal weather conditions, and lower feed costs. O verall we expect a growth in milk production greater than two percent will result in a drop in the BFP to more normal levels experienced in 1995 and 1997. My BFP forecasts are in Table 4 below. The BFP in 1999 is expected to be well below that in 1999, but slightly higher than that in 1997.
Poor weather can dramatically affect the price of feed and production per cow.
Consumption can be much higher or lower than our prediction. The economy is expected to slow down in 1999 relative to this year and that could result in less consumption of dairy products. And consumption of fluid milk will continue to have a dramatic effect on the demand for milk used for manufacturing purposes. If we experience a year with positive growth in fluid milk consumption, than there will be less milk available for manufacturing. Copyright 1997-98, Contact MooMilk Produced by ISYS Idea Systems, Inc.