Even though dairy producers continue to lose money, milk output is only expected to drop about one percent in 2010, according to USDA Outlook Board chairman Gerry Bange who sees higher prices in the future.

“We do look for a price turnaround,” Bange says. “We’re looking at a $15.05 per hundredweight price for 2010, that’s up nearly 24 percent from the price we expect in 2009, which is about $12.15.”

And Bange expects those prices to be reflected across the full range of dairy products. “We’re looking for a stronger cheese price, looking for a stronger butter price, stronger non-fat dry milk pricing, whey pricing – so we’re looking at prices up rather sharply for 2010,” he says.

However, with prices down this year by about 38 percent compared to last year, Bange says they are not expected to fully recover to those levels by next year.