Dairy prices ended 2023 on a down note. Katie Burgess, director of risk management for Ever.Ag, talks about the 2024 outlook.
“Our expectations for prices next year are kind of middle of the road. We expect it to be better than 2023, but it's kind of a tightrope. Globally, milk supply is starting to tighten up a little bit so supply is tighter. Maybe that means higher prices. But we're still really concerned about global dairy demand. We see places like China buying a lot less, Southeast Asia, Japan is taking less product, and all of those are big customers of dairy generally and for us as the U.S.”
Success in 2024 will depend on higher demand for dairy products.
“If demand doesn't pick up, it could be another year of soft prices. And I think the lesson of 2023 was that prices could fall even further than you expect based on what we saw this summer. We always encourage producers to consider the Dairy Margin Protection Program via the FSA office or Dairy Revenue Protection Insurance because you can never say for sure what the future holds, so having some downside protection is really important.”
Katie Burgess of Ever.Ag.