California Dairy Holiday Demand Up and CoBank on Ag Economy
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
**Demand for California dairy products is increasing as normal for the holiday season, despite inflation that’s spiked costs of many dairy offerings.
While inflation in 2022 reached a 40-year high of 8.5%, dairy products experienced far-higher price increases like butter that was up more than 26% in October compared to a year ago.
Despite higher prices, movement of dairy products has been picking up in recent months, according to the Dairy Institute of California.
**The U.S. economy still has considerable momentum and is not currently on the verge of recession., according to CoBank's 2023 Year Ahead report.
But economists have never been more pessimistic, and there are legitimate reasons for concern.
Over the past half-century, inflation above 5% has never been tamed without incurring a recession.
CoBank vice president, Dan Kowalski says, "As financial conditions continue to tighten, we expect the U.S. economy will steadily soften through the first half of 2023."
**USDA’s National Institute of Food and Agriculture announced an investment of nearly $10 million through the Community Food Projects Competitive Grants Program.
The funding, made possible through the American Rescue Plan
Act, bolsters USDA’s food and nutrition security efforts.
Community food projects support small to medium farmers, producers and processors in urban, rural, tribal and insular areas.
