Dairy Prices 2025 Outlook

Dairy Prices 2025 Outlook

Lorrie Boyer
Lorrie Boyer
Reporter
2024 proved to be a strong year for dairy marked by healthy margins and robust milk prices. As producers look ahead, many are wondering what 2025 will bring. Chris Galen, Senior Vice President of Member Services and Governance with the National Milk Producers Federation shares the projected forecast for dairy industry prices,

“We're beginning to see uptick of milk production, though, a lot of the strong milk price, which was due to production being flat or even declining in the past 12 to 18 months. But strong prices tend to bring on more milk output, and so we're starting to see more signs of production returning to more normal levels. I don't think there's going to be gangbusters growth in most of the country, but we are starting to see some stronger production. Will that mean that we see another strong year for prices, a poor year somewhere in between? I think right now, we're looking at that latter scenario, where as long as milk prices respond are an incentive to increase production somewhat, but not a huge amount, then we should still see decent margins, though probably not as strong as what we saw last year.”

Galen says the dairy industry has made progress in addressing the impacts of bird flu on production, but the virus continues to pose a potential challenge. If outbreaks persist beyond contained areas, it could become a major factor influencing the sector in 2025 the.

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