With prices for dairy products like butter, cheese, non-fat dry milk and whey strengthening, U.S. dairy producers can expect milk prices to rise next year, according to a USDA report released earlier this month.

In the World Agricultural Supply and Demand Estimates report, the forecast is for a national, all-milk price of $19-19.90/cwt in 2013. For this year, USDA expects an all-milk price of $18.50-18.60/cwt.

USDA also lowered its estimate for 2012 national milk production to 199.6 billion pounds. In September, the forecast was for 199.9 billion pounds.

In 2013, USDA looks for national production to reach 199.7 billion pounds by October.