Part 2: Dairy Industry Check-In; US Dairy Prices Tank
“This year, you're looking at like the June margin under the dairy margin coverage program. I think it's the worst that we've seen in a decade.”
Galen gives further explanation as to why the milk prices are so low.
“We started to see more production come online last year because we saw a record high prices this time last year. And inevitably course the old joke is the cruel joke. High prices tend to cure high prices and so you get more milk as a result of higher prices. And now we're seeing those low prices. So margins are really compressed. People are justifiably upset by what they're seeing or not seeing in their milk checks.
With that said Galen says there is a bright outlook.
“The only good news is at least the forecasts in the futures markets are looking at a rebound here as we get out of the summer into the fall and winter. But I think as we end 2023, things will look a lot better than where we are right now. In the middle part of the year.”
National Milk Producers Federation, Senior Vice President of Membership Services and Strategic Initiatives, Chris Galen.