Economist Ben Laine with Terrain tells Brownfield the volatility of milk prices is likely not going to change, but what drives those market ups and downs has changed. “Supply is really not the driver. It’s not are we making too much milk or are we not making enough milk, we’re making pretty much the same amount of milk year-after-year, partly because of base programs, partly because of heifer inventories and things like that. What’s really driving things is consumers.”
Laine says domestically, consumer demand for dairy has been good, but the international markets have been shaky lately.
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