The state of U.S. dairy industry in 2023 may later be recalled as the year of “the correction,” “the valley,” or “the crash,” as milk prices have plummeted by as much as half from record-setting highs in 2022.
The seasonal decrease of milk production, higher culling, and inventory of cheese not exceeding the levels of last year, may increase buyer interest on the spot market as they look ahead to later demand.
Bad times don’t last forever. Neither do good days. The mood of the industry quickly changed from an upbeat tone in 2022 to a sad melancholy note this summer.
As predicted, a very large Dairy Margin Coverage (DMC) payment is coming to producer’s mailboxes. In fact, June’s DMC income over feed cost calculation set a new record low at just $3.65/cwt.
The hearing, which will take place in the Indianapolis suburb of Carmel, Indiana, could potentially result in the first significant reform of milk marketing orders since 2000.
There are 22 proposals for consideration during the Federal Milk Marketing Order system hearing process that will be assembled on Aug. 28 at 9 a.m. EST in Carmell, Ind.
Phil Plourd with Ever.Ag says that combine miserable weather in key growth areas such as Texas with shrinking farm margins and you get a Milk Production report showing the worst performance that we’ve seen in a while.
A limit move-up in September Class III milk came from the result of a bullish milk production report coupled with a second consecutive healthy cheese spot trade.
Producers are challenged paying the bills with the lack-lusting prices that have shown up on milk checks this summer. Dairy financial leaders share tips on what to do and not to do to survive tough financial times.
Those in Class III markets will feel the brunt of some of the lowest prices in years. While relief is coming in the form of lower feed prices, a drop in costs won’t be enough to offset their declining milk checks.
With the milk price not looking promising compared to last year, Ben Laine says that taking advantage of some opportunities elsewhere will help producers push past what we hope is the bottom of the milk market in 2023.
The saga of lower milk prices is forecasted to continue for dairy farmers as the USDA once again cut 2023 all-milk price projections in its July World Ag Supply and Demand Estimates (WASDE) report.
Negativity breeds negativity, right? Remember that. But the same can be said about positivity. Positivity can grow if we choose it too. Flip a switch on your mind, that will turn up cheerfulness on the farm.
One by one poor-performing cows are exiting herds as lackluster milk price makes it easier for producers to cull cows. The big question remains - have we culled enough cows to boost milk price?
Dairy markets continue to be in peril. On the CME Dairy Spot Call, the block-barrel spread shrunk some more as barrels came down over 3 cents while blocks were the same.
Two producers on the opposite side of the country: Dwayne Faber of Washington and Val Lavigne of New York joined AgriTalk host Chip Flory and spoke about the challenges facing their dairies.
Volatility continues to run rampant through commodity markets. Rains in the Midwest have given dairy producers a breather on the run for higher corn and soybean meal prices, but it also fizzles out the support in milk.
With the U.S. dairy exports documenting their worst year-over-year decline in four years, Ben Laine with Terrain says the headwinds facing dairy exports side of the equation is what concerns him the most right now.
After hearing reports of milk being dumped due to the surplus of milk on the market, the recent USDA Milk Production report wasn’t surprising. The May report documented a 0.6% increase over a year prior.
Last year’s record milk price year fueled producers to strategically plan how to utilize the extra income from strong milk prices. Now many producers are wondering what has changed to wildly swing milk prices.
DFA decided to withdraw its membership from the IDFA over IDFA’s decision to proceed with its single-issued petition to modify the federal milk marketing order (FMMO) system.
After hitting a record high for Class III fluid milk in April 2022 at nearly $26, spot month milk futures have plunged to new contract lows, hitting $14.92 per hundred weight on June 16.