Despite shakeups in the U.S. and overseas, new research shows the dairy industry is set up for modest growth this year.
Numbers from Rabobank show that global dairy growth will be pushed by more supplies and rising export demand. It comes after last year’s weaker milk production in key export regions. They say dairy farmers in most regions will see increased revenue this year, with farmers in New Zealand poised to see the strongest sentiment.
In the U.S., industry leaders remind dairy farmers that sign-ups are due soon for the Dairy Marketing Coverage program.
“Farmers can now obtain payments on more recent production history if they’ve expanded their production between 2014 and 2019, so that’s also available, and DMC also complements other risk management tools, such as Dairy Revenue Protection and Livestock Gross Margin Program for Dairy, which farmers can stack alongside the DMC program for additional protection on milk production that might not be covered by DMC,” said Theresa Sweeney.
Enrollment for this year began back in January and runs through the end of this month.
Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
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The USDA’s latest Hogs and Pigs Report caught some analysts off guard. Inventories came in lower than expected, signaling tighter supplies ahead, even as producers return to profitability this year.
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The government shutdown has touched nearly every sector of the ag industry since it began, and now impacts are spilling over into dairy.
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Expect firm calf and fed-cattle prices — pair selective heifer retention with prudent hedging and liquidity to bridge rebuilding costs.
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The new antitrust agreement between the Department of Justice (DOJ) and the U.S. Department of Agriculture (USDA) aims to enforce antitrust laws and monitor market activity across the ag sector.
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