The Ministry of agriculture of the USA has published a new report (WASDE) the forecast of supply and demand in the U.S. and the world for milk. The production of milk in 2019-2020 lowered based on the reduction in the number of cows and a decrease in average milk yield per cow in the world, according to Agweb.
Informed Rabobank have already talked about the reduction of world milk production in the first half of 2019 and a slight increase of its production in the second half of 2019.
According to the USDA, in 2019 the price of milk will stay at the level of 18.30 dollars/cwt vs. 18,20 USD/cwt in the July forecast, and in 2020 – at the level of 18,80 USD/cwt, which was below the data from the forecast in July.
Forecast on the import of milk in 2019-2020 revised largely due to increased demand for butter. The forecast for exports of milk in 2019-2020 downgraded due to the decline in demand for raw milk and increased competition in the market.
In 2019, the USDA raised price forecasts for cheese, butter and whey. They have increased the milk prices of class III. Due to lower prices for raw milk forecasts, milk class IV decreased in the second half of 2019 In 2020 price forecasts for cheese, butter and whey decreased compared to the July report, which caused a decline in milk prices class III and IV restorations.
As previously reported “КазахЗерно.kz” on the Kazakhstan milk market participants and experts are waiting for the commotion with the increase in procurement prices for raw materials in 2020 the Main reason for the entry into force of new technical requirements in the procurement of raw milk. To implement them are not ready to personal part-time farm.