2020 Dairy Market
No sector of American agriculture, or the world economy, has been protected from market volatility and challenges in 2020.
Expert dairy economist, Dr. Robert Cropp says, the 2020 dairy market has experienced extreme highs and extreme lows.
“I think volatility is here to stay, not to the extreme we've seen this year, I mean, where you get an $8 change from one month to another.With the coronavirus, there was so much uncertainty exactly how well the markets are going to do. Food service constitutes about half of the market for cheese and for butter. Retail has picked up a lot…but not enough to offset that.”
“As we end out the year, it's still uncertain where we're going to end up. We do get a little spike, Thanksgiving and Christmas people buy a little more cheese, a little more butter. Overall for the year, a lot better than we thought it was going to be back in May when we had a class three price of $12.14. So, we'll average probably somewhere between the $17-18 range there, which is not too bad of a year.”
Cropp suggests dairy farmers take a closer look at risk management tools, including the Dairy Margin Protection Program and Revenue Protection Program