Milk Prices Hit New Records in 2022
Dairy Report 010323
Dairy industry leaders say milk prices in 2022 set a new record for the year. Last month, Dairy Management Inc. and the National Milk Producers Federation projected prices overall to end up being at least $25.50 per cwt. That’s well above the 2014 record of $24.00 per cwt.
They report commercial use of milk and other dairy products in the U.S. continued to strengthen from August to October, allowing prices to strengthen even as production increased.
Total U.S. dairy exports exceeded the equivalent of 18% of U.S. milk solids each month since February last year. They also report the Dairy Margin Coverage (DMC) payment trigger level may dip back below $9.50 per cwt. and likely will remain below that level well into 2023.
Dairy Reform
The American Farm Bureau Federation is laying out a series of recommendations for dairy policy reform. It put together a Farm Bureau dairy working group to come up with a plan. The group consists of farmers from each of the four Farm Bureau regions.
The goal – exploring options for strengthening the dairy industry this year through the Farm Bill and modernizing the current Federal Milk Market Order system which was last reformed in 2000. Priorities for order reform include a return to Class I Mover to a Higher-of formula along with increasing Class I differentials. The group is also hoping to simplify milk checks. As for other priorities, the want to see an increase in catastrophic margin levels within DMC and a change to dietary guidelines to include whole milk and full fat dairy products.
