According to the USDA’s National Agricultural Statistics Service (NASS), national milk production for December 2008 was higher than December 2007 in contrast to the six states of the eastern region, where milk production declined with the exception of Florida. The six eastern-region states showed the following percentage changes in milk production from December 2007 to December 2008 and total December 2008 production: Florida, up 4.1 percent, 176 million pounds; Kentucky, even, 103 million pounds; New York, down 0.1 percent, 1,013 million pounds; Pennsylvania, down 2.8 percent, 866 million pounds; Vermont, down 1.9 percent, 212 million pounds; and Virginia, down 2.0 percent, 145 million pounds.

Florida cow numbers decreased the most, with 6,000 fewer cows in December 2008 than in December 2007. Decreases in cow numbers and cows remaining in the Eastern states as of December 2008 are: Kentucky, 3,000 decline, 87,000 remaining; New York, 1,000 decline, 625,000 remaining; Pennsylvania, 2,000 decline, 548,000 remaining; Vermont, 1,000 decline, 139,000 remaining; and Virginia, 2,000 decline, 97,000 remaining.

Northeast milk production is steady but somewhat below expectations. Some balancing plant managers express uncertainty as to what factors resulted in unexpectedly lower production.

Middle Atlantic plants report strong fluid demand, partly attributed to the substantial number of people who traveled to the Washington, D.C., area for the inauguration of President Obama. The increased milk volume also led to an increase of cream available.

Southeast milk sales are strong with order add-ons reported. Regional production is said to be “creeping up” with reports of increasing truck load size on many farm milk routes. Retail milk orders are expected to decline somewhat due to buyer efforts to defer purchasing until the formula milk price adjusts downward.

Florida experienced a mild cold snap that resulted in increased farm milk production. A temporary decline in milk orders is expected due to anticipation of reduced formula milk prices.

Cream was not significantly traded on spot markets. Many plants attempted to keep cream not needed for contract fulfillment for internal uses so as to avoid sales at spot prices. Churning was active to satisfy orders in advance of the Super Bowl.  PD