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Feed costs likely to weigh on milk prices for a while

A dairy economist says milk prices are still declining from 2022’s record highs.

Speaking to Brownfield during the Great Lakes Regional Dairy Conference, Sarina Sharp with the Daily Dairy Report says…

“It’s easy to fall from $25, things have softened.”  “There’s still historically high milk prices, but when feed costs are high, they don’t feel adequate,” Sharp explains.

She says while feed costs have declined from last year’s peak, they remain at very high levels with forage shortages out West affecting many farmers.

“Dairy producers at this conference have probably seen their forage costs tick up a little, but in the West, they’re paying prices they’ve never paid before for hay,” she shares.

Sharp says a decent growing season this year in the U.S. and South America will likely cause feed costs to fade.  But, until the market is confident about supplies, she says upward pressure will remain for feed prices.