Dairy Prices Strong

According to the USDA dairy margin Coverage Program, June reported the best margins in two years. However, trends could shift by year's end. Chris Galen, Senior Vice President of Member Services and Strategic Initiatives with the National Milk Producers Federation on dairy economics and expectations for the rest of 2024.

“We're looking at much better margins the difference between milk prices and feed costs as we go into the summer, but milk prices are strong. Milk Production really has been very flat the last two or three years, and so that's a big reason why now we're seeing stronger prices is because even though feed prices have moderated, no one's really in an expansion mode right now. And so that's keeping a lid on production, and that's keeping the lid on how low prices are, and hopefully giving us more upside there."

Although the wild card will be the price of corn and soybean during harvest.”

Galen says National Milk is optimistic about the remainder of the year.”

“It doesn't look like we will see margins dip down to the point where the dairy margin Coverage Program kicks in. So that's for us, kind of the barometer as to our margins. Good? Are they mediocre? Are they really bad? We saw really bad margins last year, unfortunately, and this year, things are better and trending better still.”

Chris Galen with the National Milk Producers Federation.