U.S. Dairy Demand Remains High

This is an interesting time to be in the dairy business.  USDA Outlook Board chairman Mark Jekanowski said the U.S. has relatively tight supplies, and strong demand.  He added that the nation's dairies are churning out more milk, but not as much as was expected, or as much as consumers would like to see.

“Heifer supplies are relatively tight, so cow inventories are lower than we'd probably like to see them. Milk per cow is also lower than we'd expect as well, so that's tightening up supplies.” 

And let’s not forget, raising prices that producers are getting for their milk plus.

“Margins are pretty strong as well given the relatively lower feed prices that the livestock sector is looking at this year.”

But even with higher milk and dairy product prices, consumer demand is also higher and Jekanowski said that shows no signs of letting up.

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