Class III milk prices have slipped into the high $15 level, causing problems for the entire dairy industry.
Dairy Margins in the Red
Dairy Margins in the Red

AgResource Company President Dan Basse says it is a demand issue. “It’s really a problem in the whey market; China has not shown up for whey and that’s been leaning on price” European butter imports into the United States have also surged.

The combination has brought milk prices to their lowest level in a year-and-a-half. Basse said the dairy industry is not in a good place. “The big problem would be if feed prices rocket to the upside due to a weather problem,” said Basse.

“The only helpful aspect is that the price of beef is at a record high. That’s giving the cull cow market some opportunity.”

Dairy Margins in the Red
Dairy Margins in the Red

Look also

Fonterra Australia’s milk intake was up 3.6% YOY to 7M kg of milksolids in August.

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