Dairy farmers have margin on their minds

Margin is at the forefront of dairy farmers’ minds right now, according to Lucas Fuess, senior dairy analyst at Rabobank.

“We’ve seen very high costs of production on the farm level for a few years now, primarily driven by feed prices but also by a variety of other costs. This has pushed costs of production to pretty much the highest level on record,” he said.

When milk prices were really high last year, Fuess said farmers were able to cash flow, make a profit and cover those higher costs. This year is a completely different story, however, as there has been a drastic decline in milk prices in recent months.

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