It took almost all year, but there is better news price wise for dairy producers. Milk over feed margins are at historical highs and feed costs have softened. Higher margins could continue for the foreseeable future.
September margins, reported by the USDA’s Dairy Margin Coverage (DMC) program, hit an all-time high at $15.57 per cwt. – that’s $2 higher than the previous record hit just a month earlier. Experts say both high cheese prices and lower feed costs helped to boost the margin. September’s all0milk price of $25.50 per cwt. was also one of the highest on record. Analysts say the last time that price level was hit was nearly two years ago.
Export Sales
More U.S. milk products are moving overseas. That National Milk Producers Federation says Cooperatives Working Together (CWT) secured 89 contracts last month. That added 11.2 million lbs. of product to CWT assisted sales this year. The milk equivalent is equal to more than 100 million lbs. of milk on a milkfat basis.
The organization says the products will go to customers in Asia, Oceania, the Middle East, North Africa, Europe, Central America, the Caribbean and South America. These products will be shipped from now through June of next year.
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