Dairy Producers Question Year Ahead
"The bottom line is that we've seen prices come back and margins get much healthier here in just the last couple of months of last year, USDA announced that for November, the dairy margin Coverage Program margin is back above $9.50 100 weight. And the reason that's significant is that means that the margin now is such that the program the DMC program, will pay out anything for anyone using that insurance program in the month of November and I'm hoping the margin in December will be similar. "
Galen says poor conditions prevailed last spring and summer. But there has been a gradual improvements since then.
"As we wrapped u,p 2023 The economy looks pretty good, not just the stock market, but unemployment. Inflation has come down. Consumer demand is still strong. And so that's really a big driver of demand for products like cheese and butter that help underpin farmers' prices. If the economy continues to do well. If production doesn't ramp up again, as a result of prices and margins getting better then I think we'll have a pretty good year."
Chris Galen with the National Milk Producers Federation.