Last year proved to be a strong year for dairy producers.
The National Milk Producers Federation tells aginfo.net that they are prepared for another decent year.
“So we’re starting to see more signs of production returning to more normal levels. I don’t think there’s going to be gangbuster growth in most of the country, but we are starting to see some stronger production. Will that mean that we see another strong year for prices, or a poor year somewhere in between? I think right now, we’re looking at that latter scenario, where as long as milk prices respond are an incentive to increase production somewhat, but not a huge amount, then we should still see decent margins, though probably not as strong as what we saw last year,” said Chris Galen.
High-Path Avian Flu continues to be an issue for the ag industry. Galen says dairy has made good progress since the outbreak hit their sector. They are not expecting any major shakeups in pricing unless the virus continues to spread to new areas.
Dairy farmers are expected to face strong output and export gains, but lower prices and tighter margins will persist into next year.
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All eyes will be on today’s Cattle on Feed Report, which analysts say could give a clearer picture of where the market goes next.
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