Meat expert does not expect dairy herd culling yet despite drop in milk futures
A meat market analyst does not expect the recent downturn in milk futures prices to immediately trigger dairy cattle sales.
Jeffrey Swenson with the Wisconsin Department of Agriculture, Trade, and Consumer Protection tells Brownfield he believes the milk prices are too high to trigger that reaction, even though most Class III prices have lost well over a dollar in the past three trading sessions. “In the latest milk price report, milk was $27 per hundredweight, so it might have to come down quite a bit before we start seeing more dairy cows come to market.”
Swenson says even if some dairy cows go to market, he’s not expecting a negative beef market impact because demand for ground beef is very high now.