High Beef Prices and Low Milk Prices Entice Dairy Farmers to Ramp Up Culling
Dairy Report 071123
Lower milk prices and higher beef prices are enticing many farmers to cull more dairy cows. But is it making a dent?
Sarina Sharp, an analyst with the Daily Dairy Report, says the markets are all but shouting at dairy producers to reign in milk production. High beef prices are continuing to amplify that message.
Phil Plourd, president of Ever.Ag, says right now prices have gotten low enough to discourage supply growth, but appears milk supply must be reduced even more. He says more cows must continue to exit the herd to get milk production back in alignment to help improve prices.
Minnesota Plant Expansion
Expansion is underway at one creamery to help try and increase its production. Bongards Creamery in Perham, Minn., recently announced a $125 million expansion project. It’s expecting to increase the plant’s capacity to take in 5.5 million lb. of milk per day. That’s an increase of 30%.
Bongards is a leading national cheese and whey manufacture. The co-op’s dairy farmers are based in Minnesota and North Dakota. The project is expected to be completed by June 2025.
