Industry Experts See Opportunities For Dairy
According to the National Milk Producers Federation and U.S. Dairy Export Council, the record milk prices reported in 2022 likely won’t repeat themselves this year, as production increases and consumers grapple with an economic slowdown. Members of organization’s joint economics unit recently discussed the challenges of those falling prices, but also the perceived opportunities that exist in their recent Dairy Defined Podcast. Will Loux, Vice President for Global Economic Affairs with NMPF and USDEC, said consumers worldwide still gravitate towards dairy, despite tighter economic situations.
"Inflation isn’t going away in 2023. What we expect to see is perhaps not as high of inflation as we saw this past year, but it’s still, if you take out 2022, probably going to be the highest this century anyway, so it’s still going to squeeze consumers’ pocketbooks."
Loux noted exports are on track to increase, and demand will likely be resilient as dairy remains must-have for buyers.
"Consumers around the world still gravitate towards dairy, even when they’re experiencing tighter economic situation. They ultimately view dairy as an essential item and will continue to consume it, but likely they’re going to trade down the value chain. Think less of your nice specialty cheeses, probably a bit more of your staples like cheddar and mozzarella and the like.”
Click Here to check out that entire Dairy Defined Podcast.
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