USDA World Agricultural Outlook Board Chair Gerry Bange expects milk production to increase in 2012.

Talking about the latest USDA Dairy Outlook in terms of production and price estimates, Bange says, “U.S. milk production in 2012 is expected to increase about 1.3%. We’re looking now at 198.5 billion pounds.” That’s unchanged from the last forecast, but the 2011 production total was lowered. “It looks like 2011 is going to come in right around 196 billion pounds. That’s down about 100 million pounds from what we previously thought.”

Given the 1.3% increase in production expected for the coming year, Bange says they are expecting lower prices compared to 2011. “We’re now looking at an all milk price for 2012 at $18.70 per hundred weight,” he said. That’s up 20 cents from the previous USDA forecast but down 7% from the $20.14 of 2011.