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Dairy Producers Face Tightest Margins on Record

While we have flipped the calendar to a New Year, we didn’t necessarily say goodbye to low milk prices. 2023 was a tough year financially for dairy producers and 2024 isn’t off to a great start either. According to Stephen Cain, the senior director of economic research and analysis at National Milk Producer Federation (NMPF), 2023 had some of the lowest margins since the Margin Protection Plan debuted.

“In June and July [2023] margins were down below $4, the tightest margins on record,” he shared at the 2023 Milk Business Conference in Las Vegas.

Cain adds the tightening of milk production is not only seen in the U.S., but also abroad.

Joe Outlaw, professor and Extension economist in the Department of Agricultural Economics at Texas A & M University, shares better prices are needed as most producers, especially those attending Milk Business Conference, are larger dairies and have seen their operating loans grow due to higher input costs and interest rates creeping upward over the last year.


January 3, 2024


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