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Dairy Report: Dairy Prices May Not Recover Until Second Half of 2021

February 2, 2021

A new dairy market report is out and it reports a mix of bullish and bearish market indicators for this year so far. The report is from the National Milk Producers Federation and Dairy Management. It says the U.S. average all-milk price hit its peak in November but isn't expected to reach similar levels until the second half of this year at the earliest.

Meanwhile, milk production continues to rise. Compared with a year earlier, November production was 3% higher and U.S. dairy cows were up by 62,000. The report says total domestic commercial use of milk in all dairy products was higher September through November.

But a temporary lull in government buys at the end of the year was accompanied by a drop in the monthly survey cheese price. A drop of more than 80-cents per lb. from November to December, and that in turn brought the price of Class III milk down. The report also says shipments overseas continues to be a bright spot for dairy.

Dry Period Nutrition

Dairy producers know the importance of feeding a dairy cow the proper nutrition during her dry period. But what you feed them can make all the difference.

New research from the University of Illinois shows diets that contain consistent energy levels and the rumen-boosting supplement monensin may be ideal.

Researchers say many producers gradually increase the energy intake during the dry period to help adjust the rumen and adapt the cow to greater feed intakes after calving. But they say their research shows it's of questionable benefit for many farms, and it may be safer to just keep a constant level of feed intake before calving. The results of the study are published in the Journal of Dairy Science.


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