Dairy operators will be churning out a lot of milk this year and getting a little less money for it.
Record High Milk Output in the Forecast for 2016
U.S. dairy may produce 211.8 billion pounds of milk this year, “That’s a record milk production.”
About one and a half percent more than last year but of course USDA outlook chairman Seth Meyer says with a little bit more milk output, “So a little bit of a lowered expectation for milk prices,”
In fact Zach Myers says price respect are little lower than projected just a month ago “We didn’t make some adjustments this month and a softening of milk prices, softened it about 50 cent and that’s giving us an all milk price of $15.75,” down $2 33 from 2015 and naturally depending on demand and feed prices.
“This may trim margins a little bit” but not by that much.