The latest report from USDA finds milk production was up last month.

Milk production in the 23 major States during October totaled 14.8 billion pounds, up 3.3 percent from October 2009 and higher than the previous month as well. The September production numbers were revised by six million pounds to 14.5 billion pounds. Production per cow in the 23 major States averaged 1,767 pounds for October, 47 pounds above October 2009. The number of milk cows on farms last month was 8.37 million head – 52,000 head more than October 2009, but unchanged from September 2010.

A slow down in the herd expansion caused USDA to back off some on earlier forecasts for higher production next year. USDA Outlook Board Chairman Gerry Bange says they now expect production to increase about 1.4 percent next year, down just a fraction from the previous forecast. “The reason we came off on that is we’re seeing a slower rate of growth in cow numbers at the moment,” said Bangee. “As a matter of fact, it looks like we might actually see lower cow numbers” by the end of 2011.

The forecast also slightly lowered the all milk price is forecast to average $16.30 to $16.40 per cwt for 2010 and $15.95 to $16.85 per cwt for 2011. “Non-fat dry milk prices have been running a little higher but butter prices have been running a little lower,” said Bange.