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Production going up, milk prices going down

 

Mark Stephenson

World milk production is on the rise again, putting pressure on prices.

University of Wisconsin Center for Dairy Profitability Director Mark Stephenson tells Brownfield, ” We’ve just got more evidence of milk production that is heavy, burdensome, not so much in this country but in other of our competing countries around the world for export markets.”

Stephenson says places like New Zealand, Ireland, and the Netherlands are increasing milk production, making it tougher to export U.S. dairy products.

Stephenson says he expects milk prices to fall this winter, but not as low as 2016.  “They aren’t going to go, in my opinion, as low as they did in 2016, but they are going to go down from where they are at today because there is just this general feeling that our big demand season of the year is right in front of us now, and most of the buyers for dairy products, cheese, butter, that type of thing will have made their contracts and commitments already.”

And the price range?  Stephenson says, “I think we’re going to see prices, especially for like Class Four down in the fourteen dollar range.  Class Three, a little better than that, certainly in the fifteen dollar range for a period of time but then beginning to climb a little bit again.”

Stephenson spoke with Brownfield after giving his market analysis to the National Agricultural Bankers Conference in Milwaukee.

 

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