It appears that the dairy industry is experiencing an encouraging trend in market value. Markets have come down somewhat from where they were at the end of last year, but Dairy Analyst with Rabo AgriFinance, Ben Laine described a positive outlook for the dairy industry in the year ahead.
“Right now, we’re in a situation where things are starting to look much better than they had for probably the last four years or so and we’re starting to come out of that period of pretty low prices and tight margins,” Laine noted. “Overall I think markets are still relatively tight and supportive through next year.”
California’s adoption of the Federal Milk Marketing Order has also helped to provide more clarity in domestic production figures. “I think what it does is it puts it on more of a level playing field. It makes it easier to compare apples to apples and see what the value of milk in different uses is in California and other parts of the country,” said Laine.
Listen to the report below.