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2019: Year for significant recovery in dairy

Wisconsin ag economists are optimistic for $17 milk by the fourth quarter because of continued reduction of the dairy herd.

“I think this is the year that we’re looking for for the recovery.” 

University of Wisconsin’s Mark Stephenson says every month reports are indicating the outlook for prices is improving.

“Most of the countries that are export competitors around the world have got signs of tightening markets too so it’s a time for significant recover—the first time in almost five years.”  

Economist Bob Cropp says reduced demand from China as they deal with African Swine Fever could be behind a 20-cent dip in dry whey prices in the first part of this year, which has limited the Class III price by at least a dollar.

Both say declining milk production is positive for prices and if improved cheese stocks and sales continue, milk futures should pick up before the end of the year.