A study found that the dairy checkoff returns $4.78 for every $1 invested, while the dairy trade outlook is improving. For more on these stories watch the AgDay video above or read the following news brief links.
A recent analysis was released by USDA that shows a cost:benefit ratio of $4.78 of return for every $1 invested in promotion of dairy products. The analysis was done independently by Texas A&M University and was conducted using data from 2016.
Global Dairy Trade News
Dairy prices are moving higher with the 9th consecutive twice monthly trading session for New Zealand’s Global Dairy Trade showing improvement. Prices rose 0.8% from the previous auction. The biggest gains were saw for butter which jumped 5.8%. However, lactose took a big hit falling 5.3%.
For the U.S., the trade picture is looking better after a near catastrophe was avoided when President Trump announced that he would not shut down the border with Mexico. Had the U.S.-Mexico border been closed it might have halted trade with the U.S. dairy farmer’s largest trade partner. During 2018, the United States exported $1.4 billion worth of dairy products to Mexico.