Dairy Margins Could Improve in 2017

Dairy operators are putting out more milk in 2016 than in 2015, and next year could see another increase as well.

Milk prices have reflected that larger supply as they have dropped over the first half of the year, but USDA Economist Rob Johannsson said that could be ending soon.

“It looks like we found the bottom in the second quarter and we’re starting to show increases in expected dairy prices in the third and fourth quarters of 2016 and carrying on into 2017.”

That’s not the only good news for dairy producers as feed prices are expected to drop which means they could see improved margins in 2017.