Optimism For Dairy During Difficult Times
With the farm and ranch report, I'm Rick Worthington. On the heels of the announcement from Dean Foods, the biggest milk company in the United States, who recently filed for Chapter 11 bankruptcy protection. There's word from people who know a thing or two that the dairy industry does have reason for optimism. Former AG Secretary Tom Vilsack is currently the president and CEO of the U.S. Dairy Export Council. He says it's not like people aren't eating dairy products.
94 percent of households in the U.S. have fluid milk in their refrigerators, butter at a 50 year high, consumption domestically, cheese at a record high. Domestically, we've seen increases in exports since we began our next 5 percent plan, both in volume and in value. Value is up almost a billion dollars more than it was just a couple of years ago. And I think that's reflected in the fact the prices are at the highest they've been in five years. So I think we're beginning to see some rebound for dairy farmers.
And on top of that, he says dairy exports are other reasons to expect better days ahead.
The long term future is good for us, certainly on the export side. Japanese agreement, once that gets approved by the Japanese diet, which I expect to have very soon. So and if we get USMC a ratified, then it normally preserves our number one market in Mexico, but also creates new opportunities in Canada. So again, I'm optimistic.
Meanwhile, the Dairy Farmers of America says it's in advanced discussions on an acquisition of Dean Foods.