WASHINGTON DC (News First) – It’s an interesting time to be in the dairy industry. Here’s Gary Crawford and USDA Outlook Board Chairman Mark Jekanowski.
One economist says you can pretty much sum up the current dairy situation this way. Relatively tight U.S. supplies and strong demand. USDA Outlook Board Chairman Mark Chekonowski says the nation’s dairies are churning out more milk, but not as much as had been expected and not as much as the market would really like to see. Heifer supplies are relatively tight, so cow inventories are lower than we’d probably like to see them. Milk per cow is also lower than we’d expect as well, so that’s tightening up supplies. And of course, raising prices that producers are getting for their milk. Plus, margins are pretty strong as well, given the relatively lower feed prices that the livestock sector is looking at this year. But even with higher milk and dairy product prices, consumer demand is also higher and shows no signs of letting up. So all in all, a pretty good situation right now for dairy operators. Gary Crawford reporting for the U.S. Department of Agriculture.
