A new report from CoBank suggests the shift to larger dairy farms could lead to longer periods of lower prices.
Senior dairy economist Ben Laine tells Brownfield the dairy markets have traditionally followed three-year price cycles, however, since 2014, that hasn’t been the case. “As a way to survive those price cycles, dairy farms got bigger and consolidated. As a result, because those large farms are driving the production right now, they’re less responsive to these price changes.”
He says at least 50 percent of dairy farms today milk 1,000 cows in the U.S.
Continue reading Low milk prices will last longer with larger farms at Brownfield Ag News.
