The Milk Market is Showing Bottoming Signs. Opportunity Could Be Right Around the Corner.
- amy55735
- May 5
- 1 min read
As a marketer of milk, much of your success depends on where we are in the market cycle AND your natural reactions to it. The stronger the market (and your optimism for continued higher prices), the more likely you are to wait too long to set your price. Conversely, the weaker the market (and remnants of hope for better days ahead), the more likely you are to want to set your price too soon. With this in mind, let’s talk about where we are today:
Margins are tightening as milk prices have fallen from $20+ levels to $17 or less.
Demand has cooled and each dairy spot product is in a steady downtrend.
We’re in the midst of trade wars with Mexico, Canada and China and seemingly daily, disruptive tariff headlines.
All in all, you wouldn’t be alone if you felt a touch of panic or even hopelessness. This leads to the question that is important as you make your upcoming marketing decisions: are we still well in the midst of a downward slide of prices and squeezed margins or are we approaching the bottom of the market? And depending on the answer, how are you going to react?
totalfarmmarketing.com
Evan Disher
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