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2017 dairy markets look promising

An ag economist says the dairy market is expecting a strong recovery in 2017.

“New Zealand is down in milk production, Australia is down dramatically in milk production, and it looks like the European Union is really slowing down.”  Chris Wolf with Michigan State University tells Brownfield increasing incomes in the global middle class is one of the best demand factors that will continue to support U.S. prices.

However, he says 2016 has been a bad financial year for dairy farmers.  “Not only has the milk price been low in 2016, but the cull cow price, the deacon calf price related to the beef price have been low and also crop prices are at best break even at this point.”

Speaking with Brownfield during the Michigan Ag Credit Conference, Wolf says with the continued low milk prices some farmers may have difficulty getting operating loans next year or have even decided it’s time to exit the business.

AUDIO: Interview with Chris Wolf