Dairy Margins Tighten
"This has been a really tough year for dairy farmers. So far, the price of milk really dropped last year, we had a great year and a lot of money was made by farmers. And then what happens usually is that high prices tend to cure high prices. We saw some increased production Come on. And as a result, prices and just margins overall have really tightened up. The good news is it looks like we've reached the bottom and that margins will get better and prices for milk will get better as we get through the fourth quarter of 2023 butter which is a big driver of milk prices that has reached record levels at the Chicago Mercantile Exchange. So that's a really good sign."
Although production has begun to taper off due to high commodity prices, whether the economy and other factors, prices are expected to level back out eventually.