Dairy Producers Cautiously Optimistic Regarding Future Industry Profitability

ARLINGTON, VA – Dairy producers are finally reading some optimistic headlines as the industry works to right the economic ship that almost sank last year.

According to the National Milk Producers Federation (NMPF), low milk prices combined with high feed costs presented extremely difficult challenges for dairies that are today seeing domestic milk production line back up with demand.

Another positive sign has been a general end to a long slide lower for average milk prices in 2021, with domestic use of milk in all products showing a 1 percent year over year gain and exports marking toward a new record.

Double-digit growth in commercial cheese sales is also adding to the optimism.

Tempering those feelings, the unknown factor of the possible destruction in demand or breakdown of supply chains among growing cases of coronavirus is concerning the industry.
(SOURCE: All Ag News)