Milk Margins: Dairy market set to rebound after a crazy ride

The dairy markets have been many highs and lows recently, but consumers are still purchasing, and dairy specialists say margins are expected to rise.

“2022 was kind of a year of highs, right? We had record high milk prices, but with that we also had really high feed prices. So while the income coming in was high, so whether the expense is going back out right, but with that margins still were quite good, relatively speaking, right kind of across the board. For dairy, so that was kind of nice. That had gave a bit of a reprieve for producers to be able to catch up on some things, maybe make some new investments that we’re seeing out there and also maybe give a little cushion,” said Leonard Polzin.

Polzin says there are some important policy decisions to be made as U.S. dairy looks to the future.

“So right now, one of the top areas of discussion, of course, are federal milk marketing orders, because as we look at not only the Farm Bill coming up, but potentially a federal milk marketing order hearing within the next, say, 12 months or less, looking at making some of those changes to reflect maybe the needs or desires or different changes in the marketplace within the industry, all the way from the farm, through the processing to the retail side. So there’s been a lot of work across different individuals within the university looking at that. So that way, as these policymakers and decision makers all come to the table, they can have the information there in order to make as informed a decision as possible. So that way all people in the marketplace, we can have an unbiased source in order to reference for that.”

Related Stories
Unprecedented heavy rains in California have wreaked havoc on strawberry fields and other crops, posing a threat to farm workers and potentially causing price hikes for consumers.
The Center for Biological Diversity launched a map project to reduce pesticide use near endangered species habitats. However, there are some concerns over the accuracy of the maps.

Agriculture Shows
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join Host and Market Day Report Anchor Christina Loren as she interviews members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Farm Traveler is for people who want to connect with their food and those who grow it. Thanks to direct-to-consumer businesses, agritourism, and social media, it’s now easier than ever to learn how our food is made and support local farmers. Here on the Farm Traveler, we want to connect you with businesses offering direct-to-consumer products you can try at home, agritourism sites you can visit with your family, and exciting new technologies that are changing how your food is being grown.
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.
Host Ben Bailey hops in the tractor cab, giving farmers 10 minutes to answer as many questions and grab as much cash as they can for their local FFA chapter.