Dairy prices rebound from pandemic lows
As many ag sectors are struggling to recover from supply chain disruptions, leaders say that a quick response eased distress for dairies during the early stages of the pandemic.
After the effects of the coronavirus hit the market, dairy prices plunged, but as more states lift social distancing restrictions optimism is returning.
“The markets currently are looking like there’s going to be a very strong rebound and prices will get back to a more normal level for the second half of this year,” Peter Vitaliano, the Chief Economist for the National Milk Producers Federation, said.
The industry entered the pandemic with a strong milk supply and herd numbers. As distribution bottlenecks created challenges, leaders say that dairy’s swift action reduced fallout. Federal assistance also helped spur recovery.
“Farmers are in the midst of receiving some of the largest direct payments, as a result of the Coronavirus Food Assistance Program,” Vitaliano said.
Analysts recommend channeling payments to April and May Losses.
“Those payments would be sufficient to give an equivalent of milk prices for all dairy farmers, on average, during those two months,” Vitaliano said.