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Dairy processors are expanding into new regions

Mike North with Ever.ag tells Brownfield milk production in the last six to twelve months has been growing in some regions while cutting back in others. We’ve continued to stay somewhat steady to somewhat higher in milk production in the upper Midwest, which generally means there’s going to be a lot of milk to go into a cheese vat. Conversely, the west and the southwest has been experiencing ongoing diminishing production.”

North says there is less milk in the west and southwest, so less milk in the churns and dryers. “Lees cream being made available, less powders, and so that has favored a little bit more price strength there, and you know, interestingly enough, as we look further down the line, there are about 26 new facilities under construction in planning, different stages, looking forward over the next couple of years.”

North says about a third of the new processing is for cheese, and he’s concerned about the increased production knowing inventories remain relatively high and export sales remain flat.

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