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Record milk prices likely for 2022

U.S. milk prices are on pace for a record-setting year.

National Milk Producers Federation chief economist Peter Vitaliano tells Brownfield this year will likely top 2014’s all milk price record by nearly two dollars.

“We’re looking at $25.70 right now as the likely average that’s going to come in, that’s significantly higher,” he says.

Vitaliano says three consecutive records were set and broken during March, April, and May as feed costs and inputs elevated prices.

“It’s receded a bit, but the monthly prices so far are still close to or above $26 a hundredweight,” he says.

He says the unprecedented prices in previous years would have created explosive expansions on farms but that’s not the case in today’s price environment.

Vitaliano says as a result retail dairy prices are now seeing significant growth with cheese 13 percent higher than last year and butter up 25 percent.