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.
One trader said the products entering the U.S. are primarily grind and trim, noting that the volume and type of beef, on its own, should not cause a major disruption. However, he says fund traders are reacting heavily to headlines rather than market realities.
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Sen. Roger Marshall discusses the Senate’s unanimous passage of the Whole Milk for Healthy Kids Act and what expanded milk options could mean for students and dairy farmers. Industry groups say it is a win for student nutrition and dairy producers.
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