Will the Dairy Economy Rebound by 2025?
The dairy economy is in rough shape. This is what Ken Bailey, PhD shared with a group at the Dairy Financial and Risk Management Conference earlier this month in Harrisburg, Pa. Bailey has devoted his entire career to the economics of the U.S. and global dairy industries.
Bailey shared with the dairy audience that the Federal Reserve has tightened down on the economy, raising interest rates to cause enough of a strain to push towards a slowdown. He said that the U.S. dairy market is hampered by suppressed demand, both at home and abroad.
“The Conference Board forecasts that the growth seen in many parts of the economy will gradually buckle under mounting headwinds later this year, leading to a very short and shallow recession,” Bailey says. “This outlook is associated with numerous factors, including elevated inflation, high-interest rates, dissipating pandemic savings, lower government spending, and the resumption of mandatory student loan repayments. We forecast that real GDP growth will slow to 1.9% in 2023, and then fall to 0.5% in 2024.”
By KAREN BOHNERT
September 22, 2023