Dairy Producers Face Low Milk Prices and High Feed Costs

Dairy Producers Face Low Milk Prices and High Feed Costs

I’m KayDee Gilkey with the Northwest Farm and Ranch Report.

According to Northwest Farm Credit Services quarterly dairy Market Snapshot, dairy producers are dealing with pressure from both low milk prices and high feed costs.

Northwest Farm Credit Services VP-Market Research and Development Michael Stolp shares an overview for the Pacific Northwest’s dairy industry.

Stolp: “In the dairy industry, Northwest dairy producers face low milk prices and high feed costs. If we look at average milk prices, prices in Idaho are forecast at mid-$16 per cwt for the remainder of the year. In Washington milk prices are forecast at mid-to-high $15 per cwt. This compares to break-even levels calculated by Northwest FCS of approximately $17 per cwt in Southern Idaho and between $17.25 and $18.25 in Washington. Milk prices might increase this summer, if above normal temperatures reduce milk production.”

Idaho milk production during June totaled 1.15 billion pounds, a 1.5 percent increase from the same month last year, but down 1.5 percent from previous month. Oregon milk production increased by .9 percent to 213 million pounds and Washington milk production was unchanged from the previous year at 524 million pounds.
In dairy policy news, the Idaho Dairymen Association’s most recent newsletter states, that the House’s version of the Farm Bill includes the provisions for reform of the dairy producer safety net that is supported by the IDA.

I’m KayDee Gilkey with the Northwest Farm and Ranch Report on the Northwest Ag Information Network.