The U.S. dairy industry could be in for a bumpy ride this year and beyond, according to a University of Missouri expert. Economist Scott Brown shared the following predictions with the audience of the 2012 Southern Dairy Conference:
- Feed cost volatility will continue to be the norm
- Global dairy product demand will have a major impact on U.S. dairy prices. The current low value of the dollar globally is favorable for U.S. dairy exports
- The large U.S. federal deficit continues to be a drag on overall U.S. economic recovery
While Brown does not expect the situation to become as dire as conditions in 2009, he suggests that producers engage in risk reduction strategies to weather the ups and downs in the marketplace that probably lie ahead.
Read more of Brown’s insights.