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Rabo AgriFinance calls for continued dairy price improvement

Rabo AgriFinance dairy analyst Ben Laine tells Brownfield he’s optimistic about the dairy outlook for the fourth quarter and start of 2020.

“In the U.S. and across the world, you’re seeing some constraints that are really keeping people from being able to expand in a big way so I think seeing that constraint is still going to help prices going into the first half of next year.”

He says even if farms would like to expand, financially they’re not able to do so and if they could, “Even if you are in a position where you would like to grow, there’s not really necessarily someone that’s able to take that milk right now,” he says.

Laine says demand for cheese and slowly improving trade outlooks also add to a positive outlook ahead.

Laine also expects to see more dairies to exit but at a slower rate.