The dairy markets have seen many highs and lows lately, but customers are still buying, and dairy experts predict that margins will improve.
“Wasn’t 2022 a year of extremes?” We had record-high milk prices, but it also meant record-high feed costs. So, although the money coming in was high, whether the expenses were going back out properly, the margins were still fairly solid, comparatively speaking, all across the board. That was sort of great for dairy. “That gave producers a bit of a reprieve to catch up on some things, maybe make some new investments that we’re seeing out there, and also maybe give a little cushion,” Leonard Polzin said.
Polzin believes that crucial policy choices must be taken as the dairy industry in the United States looks to the future.
“Right now, one of the top areas of discussion, of course, is federal milk marketing orders, because as we look at not only the Farm Bill coming up, but potentially a federal milk marketing order hearing within the next, say, 12 months or less, we’re looking at making some of those changes to reflect maybe the needs or desires or different changes in the marketplace within the industry, all the way from the farm, through processing, to the retail side.” So there has been a lot of effort done by many people at the institution to look at that. As a result, when these policymakers and decision makers all get around the table, they will have all of the information they need to make the most educated choice possible. As a result, all participants in the marketplace will have an impartial source to turn to.”
