Information
Dairy manufacturing better than export demand
An economist says file U.S. dairy exports will not be sufficient to spice up dairy costs due to increased manufacturing.
Danny Munch with American Farm Bureau Federation tells Brownfield that 2025 milk manufacturing grew greater than demand. “The U.S. all milk value averaged $19.70 per hundredweight in November, and that was down 4 {dollars} since early January of final 12 months so milk costs are nonetheless dropping considerably.”
USDA estimates the U.S. has about 200-thousand extra dairy cows, as farms are conserving cows longer and breeding them for beef calves.
Munch says decrease milk costs have made the U.S. extra aggressive on the worldwide market, with Cheddar cheese costs down 28% and butter costs down 47%. “That places us far under New Zealand and the European Union costs, which once more, strikes product abroad, however when costs are that low domestically, and even when it makes us extra aggressive, we’ve actually obtained to maneuver a variety of it and normally that finally ends up boosting costs somewhat bit and making us much less aggressive so that you form of have this negetive suggestions loop occurring.”
Munch says market dynamics, resembling holding milk cows longer, are growing the short-term milk provide and suppressing farm-gate costs.
AUDIO: American Farm Bureau Federation economist Danny Munch discusses dairy exports in comparison with manufacturing with Brownfield’s Larry Lee
