Dairy Producers Experiencing Higher Prices Fueled By Exports

ARLINGTON, VA – Earlier this year, dairy producers were faced with extremely challenging issues. From volatile markets to the coronavirus-related shutdown of schools, and a bottleneck in the supply chain that led to some producers having to dump milk because they had no place to deliver it to. According to the National Milk Producers Federation (NMPF), the industry survived with government support and robust export markets. While total domestic commercial use of dairy products increased slightly during the past six months, the ongoing government purchases through the Food Box, Section 32, and other programs have added strength to milk and dairy prices. The real shining star was the export markets where growth, year-to-date is showing record delivery of U.S. milk solids. The U.S. average all-milk price reported by USDA rose $2.30 per hundredweight from a month before to hit $20.20 in October. The monthly cheese price reached $2.45 per pound in November (an increase of 16 cents), providing an indication that November’s all-milk price will top the October price. Forecasts for 2021 remain uncertain.
(SOURCE: All Ag News)