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Dairy Industry Growing Slower than Expected

Outlook board cuts forecasted production.

The dairy industry may not be expanding production as much as had been thought earlier in the year. Analysts at the Agriculture Department's Outlook Board cut 700 million pounds off their projections for milk production this year in their latest forecast. According to Outlook Board Chairman Gerry Bange there is a single reason for that reduction in the forecast.

"Slower growth in the milk per cow, which we think is due to higher feed costs," Bange says. "And we're not sure, but there is some anecdotal evidence that suggests there is maybe a little less BST use out there."

The numbers still show production per cow still 12 pounds more than a year ago, and with 141,000 more head in the dairy herd than last year, should bring milk production up 2.3% this year.

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