The January 1 USDA Cattle Inventory Report showed one percent more milk cows than a year ago, but that may not last.

“We do expect to see a decline in cow numbers,” said USDA livestock economist Shayle Shagam.

While the numbers on January 1 for milk cows totaled at 9.2 million, milk replacement heifers stood at 4.5 million, down 1 percent from 2011. “That’s a function of the fact that we’ve seen some weakening dairy prices relative to a year ago and relatively strong feed prices, which should squeeze margins for producers.”

However, Shagam says less milk cows doesn’t mean less milk as they are expecting to see continued growth in milk per cow, and “probably about a one percent increase in milk production during 2012.” The all-milk average price this year is expected to be about 7% lower than 2012.