NWFCS: Returns for Dairy, Cattle Will Be Small in 2018

Today, we start our five part series on Northwest Farm Credit Services outlook on 2018, we start with the dairy and cattle industries.  Karen Witt, NWFCS Vice President, said the national herd has grown over the last four years, but drought in much of the Midwest has impacted land used for grazing, potentially slowing or reversing demand for herd growth.

“Demand for U.S. beef remains strong in domestic and major export markets.  Still uncertain trade policy hangs over ag markets including meat.  With that said demand continues to outpace supply and producers should see slightly profitable results.”

Witt added many calves are moving into the feedlots, which may slow or reverse cowherd expansion.  Meanwhile, Witt says the dairy industry should expect dairy prices to remain unprofitable through the second quarter, and the oversupply of dairy product is sold at clearance prices.

“A bright spot appears to be coming from China as they increased purchase in January by 36% compared to the same time last year.  A slightly optimistic forecast from the USDA predicts a better all milk price in the second half of the year.”

Witt adds moderate profitability is expected for dairy as we head into the fall.

Join us Tuesday as turn our attention to the Tree Fruit Industry.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com