While Dairy Has Potential, The Outlook Is Mixed

When looking at the next 12 months, one of the sectors that’s expected to do well is dairy, both domestically and internationally.  Mike Zuzolo President of Global Commodity Analytics and Consulting said for him, the outlook is a little mixed.

“Because I can see the lower prices for the cheeses and for some of the product markets," Zuzolo said.  "But I also see the beef on dairy is a real bright spot right now and retention has been able to create an opportunity where the calf prices and the heifer prices have gotten into very good profitable territory.”

Zuzolo said that’s a story that he thinks could wrap up by the end of this summer.  He added he’ll also be watching this calving crop, especially during the month of February very closely. 

 Another issue Zuzolo will follow very closely is the strength of the dollar.  Throughout much of 2025, the U.S. dollar was relatively weak, however it did pick up a little momentum as 2026 started.  He said if the dollar strengthens, that will make U.S. goods more expensive on the open market, and thus less attractive.

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