For those concerned about rice and grain production, according to the most recent USDA Rice Outlook U.S. rice production at the end of 2008 looked uncertain and exports were expected to increase during 2009. As of this being written, it looked like Egypt and India were expected to lift their bans on exporting.

The 2008 export had a great deal to do with the higher prices both in the U.S. markets and internationally.

What can we expect for this year?

So far it looks like prices are still going to be higher than last year for long and medium grain. With supplies of medium and short grain rice slowing because of concern over water availability in California for 2009 planting.

Mother nature has played a part in the less than normal growing season, with first very dry conditions and then with heavy snow and rains in January and February which delayed planting.

Another factor is the economy, which is prompting people to find alternatives to more expensive foods and who may turn to rice, which is in comparison, low cost, nutritious and has a longer shelf life, and may result in higher consumption by the growing U.S. population.

For the balance of the year we anticipate higher domestic consumption, higher prices, lower domestic availability than 2008, and higher imports.

Sources: U.S. Department of Agriculture

Delta Farm Press (http://deltafarmpress.com/rice/production-imports-1222/)

The March 4, 2009, issue of the ITF newsletter describes a report by The Babcock Institute that we found interesting and thought our customers would, too.

According to the report, the U.S. dairy export and price boom has bottomed out.

During the past 5 years a surge in U.S. (and foreign) dairy products showed a dramatic increase, but in part because of the general global financial picture, world demand has dropped.

U.S. dairy farmers have already been hit with the lowest prices in six years--and this on top of higher feed costs. The end result, as the U.S. Dairy Exports report also makes clear:

"Lost exports mean more milk on the domestic market and larger cuts in the milk supply to balance supply and demand at profitable prices."

All-in-all it's a classic case of marketplace changes due to supply and demand, so here's our take from it all:

If you're currently in the buying mode for dried milk, dairy powders, or other dairy products be sure to factor this into your costs and projections. As you can see below, inventory on hand of various dairy products is has changed from 2008, so depending on your needs, this really could be a great time to buy and stock up for the future.

Dry Milk Powders: (vs Jan '08)
Product	Output	Change
Nonfat dry milk, human	156 million pounds	up 31.1%
Skim milk powders	17.7 million pounds	down 61.3%

Whey products: (vs Jan '08)
Product	Output	Change
Dry whey, total	88.4 million pounds	down 3.6%
Lactose, human and animal	60.3 million pounds	down 3.1%
Whey protein concentrate, total	34.2 million pounds	up 4.2%

Dry Milk Powders: (vs Jan '08)
Product	Output	Change
Nonfat dry milk, human	156 million pounds	up 31.1%
Skim milk powders	17.7 million pounds	down 61.3%

Note: stats as reported by the National Agricultural Statistics Service.