A dairy analyst says farmers’ margins will continue to be squeezed in the second quarter because of high production costs.
Lucas Fuess is with RaboResearch.
“Margins will be squeezed here over the next few months before maybe a bit of price recovery into the back half of the year,” he says.
Fuess says hopefully last year’s record high prices are providing farmers with some cushion.
“It will be a tough few months here and I think, in most cases, farmers probably haven’t seen the lowest milk prices yet come through in the milk check, that will come here into Q2,” he expects.
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