Right… no surprise in the headline. There has been some liquidation of herds, but in many cases “those cows are just moving to a new farm and we’re not taking much production off the market,” said Mike Opperman, editor of Farm Journal’s Milk. Lowering supplies was barely in the conversation between Opperman and AgriTalk After the Bell host Chip Flory. Instead, the two focused on demand growth and trade. Opperman explained President Trump’s tariffs on steel and aluminum imports has raised the anxiety level in all of agriculture, including the dairy industry. “We consume about 85% of what we produce here in the U.S., so the domestic market is still very important and developing new products for the domestic market is critical,” said Opperman. But he also explained that last 15% of what is produced in the U.S. needs a market, too, and any hurdle dairy exports must clear is another hurdle for milk prices to clear, too.
AgriTalk After The Bell March 9 2018