Milk prices remain strong
A risk management specialist says today’s U.S. milk prices look very good right now. Mike North is with ever.ag. He says, “As U.S. prices have skyrocketed in the course of the last few weeks, we’ve now fully caught up to global prices and in almost every class. With the notable exception of cheese, we’re on an even keel with world markets.”
North says as 2021 was wrapping up, the question remained about if demand for dairy would stay strong both globally and domestically, and he says so far, it has. “We’ve continued to see strong domestic cheese sales laid against a strong milk powder market and a hungry global consumer who wants more protein, who wants more consistency in diet.”
But North says the old saying of higher prices cures higher prices might apply because it’s unclear if consumers will keep up this level of demand. “There is pushback at certain levels. We just don’t demand as much quantity at higher prices than we do at lower prices. It’s econ 101.”
North spoke to Brownfield during the recent Dairy Strong conference in Madison, Wisconsin.