Dairy producers have been enjoying some near to record high milk prices and that could continue for a while. That’s according to Sarina Sharp, Dairy Market Analyst with Ag Business Solutions. She says milk futures are trading above 20-dollars per hundred weight through much of 2022. Production has been down with less cows in the U.S. herd in part due to higher input costs and she thinks that will continue to be supportive.
She says high feed and forage costs have been driving the lack of expansion in the U.S. and globally especially in Europe.
The U.S. is coming off a record year for dairy exports which has also been supportive to the milk market and Sharp says product sales should continue to be strong.
She says rebuilding the herd is also difficult with the tight supplies and high prices for heifers.
