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What’s ahead in the dairy market


Dairy markets appear to have stabilized after the uncertainty of 2020.

Brian Doherty is the Senior Market Advisor with Total Farm Marketing, and he says despite more stability, there are some warning signs ahead in the dairy market.

“I think there are some warning signs, and it’s production. We’ve been at this for a long time, and if you stop and look at the production capability that our producers have today versus a decade ago, or particularly 20-30 years ago, it’s been a revolution. When you get high prices, you get some natural expansion when you have good foodstuffs, and we’ve had good crops in the dairy-producing regions, so there’s feed availability. That’s our biggest wet rag; we’re good at what we do.”

Doherty says one hedge against future uncertainty is potential demand, especially as the nation comes out of the coronavirus pandemic.

He says there will likely be some future government support coming into the dairy market as well. How much funding and support is unknown at this time.

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Source: NFAB


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