top of page
  • ZISK

ARE MILK PRICES CLOSE TO FINDING A BOTTOM?


Higher prices generated more production. At the same time, consumers responded to higher prices by consuming less. The old saying “high prices cure high prices” once again rears its head in the milk industry. For nearly a year, prices have been in a steady downtrend. Production numbers have steadily risen due to increased milk cows as well as efficiency per cow. In other words, more production and less demand. Prices are hovering near $18 a hundredweight or less. The question now: Have prices moved low enough to generate renewed demand? Additionally, have prices moved low enough to encourage producers to cut back on production?


There may be three phases to the dairy market when it comes to production.


Phase 1: When prices are high, production generally increases. Producers respond to higher prices with the ability to expand their operations. Cash flow is important. Generally, when extra cash is available, attention towards growth becomes paramount.



April 24, 2023

edairynews.com



Σχόλια


bottom of page