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Higher Prices For Milk Forecast

Higher Prices For Milk Forecast

Get ready for higher prices in the milk cooler.

 

  1200 WOAI's Stephanie Narvaez reports a combination of factors, from higher demand for Texas milk abroad to a lingering lack of cattle stemming from the 2011 drought will combine to push up milk prices 60 cents a gallon between now and June.

 

  "We've got really booming demand for dairy products at the same time as we really don't have a lot of increase in production going," Dr. David Anderson, a livestock economist at Teas A&M tells 1200 WOAI news.

 

  He says this time it is not the inaction of an incompetent U.S. Congress that is causing the milk price rise, just simple supply and demand.

 

  "Are exports are growing and China is a big reason for that," Anderson said. "Increasing demand of milk production in the U.S. is not growing very quickly."

 

  The high price of cattle feed during the brutal drought of 2011 prompted many ranchers to liquidate their herds, and it takes several years for a cattle herd to grow back.  Some estimates say the Texas cattle herd today is at its lowest level since the 1950s.

 

 

 

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