The USDA says slightly higher milk prices and relatively low feed costs next year could mean a more profitable year ahead.
“You should see a bit improved margins.”
USDA World Ag Outlook Board Chair Seth Meyer says while milk production is forecasted to increase by three billion pounds next year, prices should remain supported. “We’re flat to higher in most products. For cheese and butter, you’ve seen pretty good demand holding up prices, even providing very small marginal increases; good demand for dry whey offering some support there; Nonfat dry milk doesn’t face a tariff into Mexico and domestic demand has been good so the price is a little bit higher there.”
USDA is projecting the 2019 all milk price to increase 75 cents to $16.95 a hundredweight.
Continue reading Profits ahead for dairy farmers? at Brownfield Ag News.
