Livestock, Dairy, and Poultry Outlook No. (LDPM-14501) 25 pp

July 2006

Dairy Backgrounder

Over time, shifts in consumer demands, in the location and structure of milk production, in industry concentration, in international markets, and in trade agreements have dramatically altered the U.S. dairy industry and changed the context for dairy policies and the sector as a whole. In the future, the U.S. dairy industry is likely to become more fully integrated with international markets. At the same time, dairy products such as fluid milk, butter, and cheese are likely to continue to be increasingly used as ingredients for restaurants and in processed foods while still being sold in their traditional forms.

Keywords: Dairy, milk, farm policy, Farm Act

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