Economist Doesn’t Expect Much Improvement In ’24 Dairy Prices
Sourse: The DairyNews
An agricultural economist says he’s expecting another tough year for dairy producers in 2024.
Agricultural economist Leonard Polzin from the University of Wisconsin predicts another challenging year ahead for dairy producers in 2024. Reflecting on 2023, Polzin notes the need for increased consumer demand to boost prices, and he anticipates a tough first quarter in the new year.
Highlighting the historical seasonal slump in January and February, Polzin emphasizes the importance of monitoring inventory levels and ensuring that product consumption remains steady. He suggests keeping inventories low to avoid overstocking and encourages a cautious approach to product buildup.
While acknowledging the positive impact of butter on dairy prices in 2023, Polzin also points out the changing dynamics in the whey market. Despite some support in the whey market, he notes ongoing shifts in international purchasing patterns that may influence the market.
Given the expected tight margins in 2024, Polzin advises dairy farmers to take advantage of the farm bill extension. He recommends farmers enroll in the Dairy Margin Coverage program once the United States Department of Agriculture (USDA) opens the program for enrollment, emphasizing the importance of securing price support stability amid challenging market conditions.
Highlighting the historical seasonal slump in January and February, Polzin emphasizes the importance of monitoring inventory levels and ensuring that product consumption remains steady. He suggests keeping inventories low to avoid overstocking and encourages a cautious approach to product buildup.
While acknowledging the positive impact of butter on dairy prices in 2023, Polzin also points out the changing dynamics in the whey market. Despite some support in the whey market, he notes ongoing shifts in international purchasing patterns that may influence the market.
Given the expected tight margins in 2024, Polzin advises dairy farmers to take advantage of the farm bill extension. He recommends farmers enroll in the Dairy Margin Coverage program once the United States Department of Agriculture (USDA) opens the program for enrollment, emphasizing the importance of securing price support stability amid challenging market conditions.
