Beef-on-dairy calf values have given dairy producers a valuable boost. But falling prices, higher feed costs and lower milk prices are set to put more pressure on margins later this year.
Dry whey prices above 60 cents per pound are boosting Class III milk prices as global protein demand surges, driven by GLP-1 medications and health-conscious consumers.
Tight milk powder inventories have supported a surge in NDM prices. But rising U.S. milk production and expanding processing capacity could quickly shift the market back toward softer prices later this year.
After several years of tight replacement numbers, rising use of sexed semen suggests U.S. dairy producers are beginning to slowly rebuild heifer supplies.
