Milk prices to start out 2019 haven’t been too encouraging for a rally that dairy farmers have been needing during a multi-year down cycle, but relief might be on the way.
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The dairy market has been a tough market says Bryan Doherty, Vice President of Stewart-Peterson.
Doherty relates that monthly increases in milk production and efficiency per cow still climbing have made the market difficult to turn around, largely because of the high supply of milk. However, things appear to be changing.
“Prices are low enough where demand is on the grow,” Doherty says.
Global dairy prices have continued to pick up steam through the New Year and beef prices are higher, too.
Doherty expects the U.S. dairy cow herd to continue to cull down and that demand for dairy products should increase this year. Recent cow herd numbers have been on the decline and Doherty points to that as a sign of a possible rally for milk prices down the road.
Trade will also play a role in where milk prices go and ongoing negotiations with China might bring a boost to the demand side of milk pricing.
For more on Doherty’s thoughts about the dairy market watch the AgDay video report above.

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