There are some warning signs for the dairy industry, specifically production and demand

The dairy markets have appeared to stabilize after the uncertainty of 2020, but a market advisor says that there are some warning signs ahead.

Those warnings are on the production side.

Bryan Doherty of Total Farm Marketing says that production capability has been revolutionized, but when you get high prices, you get natural expansion when you have good foodstuffs.

Crops are good in dairy producing regions, but the industry’s wet rag is that producers are good at what they do. He says that one hedge against future uncertainty is potential demand.

According to Doherty, “Don’t underestimate the demand market worldwide, especially as we come out of COVID, but still, it looks like the market has, a couple of times now, been way at the forefront of that, and we get the rug pulled out from under us, and yet, those rallies kept the production cycle active and alive, and the last several production reports have indicated that.”

He also says that there will be some government support from this.