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Modest Rise in U.S. Milk Output

WASHINGTON - Jul 9/10 - SNS -- U.S. milk production forecasts for 2010 and 2011 is raised slightly from last month, according to the latest forecast from the USDA's World Agricultural Outlook Board.

Milk cow numbers have remained higher than expected and milk per cow is expected to increase more rapidly than previously forecast.

Exports for 2010 are raised reflecting strong sales of dairy products but fat-basis exports for 2011 are unchanged from last month as production of fat-based products by competing exporters is expected to increase in 2011.

However, the forecast of skim basis exports is raised for 2011 as nonfat dry milk (NDM) exports will likely reflect improving economic conditions. Fat-basis imports for 2010 and 2011 are forecast lower reflecting tight world supplies and growing international demand.

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