Dairy Leaders Expect Improvements In 2017

With 2017 now days away, dairy farmers are getting a preview of what the new year may hold when it comes to prices.  And, for most producers its good news.  Class III milk futures in early December have been close to the $17 mark, which is much improved from the $13, $14 and $15 prices felt during much of the past year.

“I think global milk production growth has really slowed, Europe really took off in the spring of 2015, when they removed their production quotas, but a lot of that has settled back down," said Chris Galen of the National Milk Producers Federation.  "Now it’s come back down to earth.  Production in the U.S. has been in line with historic averages and I think demand is still pretty good.”

Galen says many in the industry are watching the future of the dairy margin protection program.  He says conversations are already taking place to improve MPP.  Heavy debate and criticism have surrounded this program and Galen says talks to improve the program are already underway.

“In fact our CEO Jim Mulhern sat down with Collin Peterson, who’s been a big advocate of the margin protection program, and they had some discussion about where to look to make some changes, and then how Congress can adopt those changes sooner rather than later.”

Galen says one concern for dairy producer looking into 2017, the strength of the U.S. dollar.

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