As dairy farmers try to manage risk moving into 2019, about the only thing you can say is that there is uncertainty as to which risk management tools is best.
The dairy industry is going through major transformation, not just with technology, but how shoppers want to consume milk and why. Statistics show a drop in cereal consumption could be hurting milk demand.
Global dairy prices dropped for a fourth consecutive time at a fortnightly auction on Wednesday as production in New Zealand showed signs of a potential turnaround after weak levels earlier in the season.
According to the USDA, the domestic demand for dairy has reached a 56-year high. At the same time, farm labor wages are also trending upwards. AgDay’s Betsy Jibben explains more in this week’s Dairy Report.
'Proprietary handlers establishing new forward contracts on or after October 1, 2018 will not be exempt from paying minimum Federal order prices.' --USDA