Dairy Markets Begin to Slip Amid Volatile Conditions

A dairy analyst has highlighted the challenges facing the dairy markets as 2025 begins, noting a disappointing performance amid increased volatility. Robin Schmahl with AgMarket.Net told Brownfield that cash cheese markets have been particularly unstable. "That’s changed the market dynamics a little bit," Schmahl said. "It’s depressed the potential for prices and that dims the outlook coming through this year."

Increased levels of butterfat and protein components have meant buyers are purchasing only as needed, contributing to significant daily price fluctuations. "You’ve got these voids, I call it, in the market where you can see this 7-8-11 cents moves from one day to the next as the buyers and sellers are, I’ll use the term complacent, and they just want to buy and sell on their terms," Schmahl explained.

He noted that export challenges may persist in the coming months, especially with tariff threats affecting trading relationships. However, Schmahl remains cautiously optimistic that export demand should improve in the latter part of the year if past trends continue, potentially leading to better prices for farmers.