By Matt Reese and Ty Higgins, for Ohio Ag Net
The world is awash in milk, it seems. Production is up, consumption is down and grim economic reality is settling in for many dairy farms.
Ohio State University Extension field specialist for dairy production economics Dianne Shoemaker does not see much light at the end of the tunnel for dairy prices.
“Sadly, I am not hearing a lot that is hopeful — too many cows, lots of heifers coming up behind them, too much milk. It sounds like New Zealand is having some weather issues, so if that results in lower than expected milk production, that means less milk for export to the international market,” Shoemaker said. ‘It is a bleak picture of the next 12 months. Top this off with uncertainty about NAFTA and proposed tariffs, and it is hard to be terribly optimistic. In spite of the oversupply of milk, farmers have to manage their businesses on an individual basis, which means they are likely to produce more milk and focus on components.” Continue reading Dairy Price Woes Continue