2020 Milk Prices: Obstacles and Opportunities
This November farmers are thankful for milk prices that appear to be on the upward swing. Some analysts say they could reach 2014 levels in the next year. What are the opportunities and obstacles that face milk prices in the year ahead? Two analysts sat down with U.S. Farm Report host Tyne Morgan for a live taping of the show at the 2019 MILK Business Conference.
“The biggest obstacle [facing milk prices] is our premium to the world,” says Brian Rice of Vault Ag. “Our cheese price is kind of misaligned versus the rest.”
Completed trade agreements continue to be the biggest opportunity for milk prices, Rice says.
“It's hard to see the roadmap with that at the moment,” he admits. “But we continue to do business. Capitalism is still working, trade is still working and people are shopping for value.”
Conversely, Michael Nepveux the dairy economist for American Farm Bureau Federation says trade policy is one of the biggest obstacles facing milk prices.
“I think the opportunity, maybe not for 2020, but long-term is rebuilding the Chinese [hog] herd,” he says. Some analysts expect China’s recovery from African swine fever, will increase whey exports.
Learn more from these analysts this week on U.S. Farm Report.