Dairy Market Situation and Outlook

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Presentation transcript:

Dairy Market Situation and Outlook Dairy Management Workshop Minnesota Milk Producers Assoc. February 16, 2018 Dr. Marin Bozic

Dairy Herd Size Stabilized when Exports Took Off 2

But Now Exports Stabilized… 3

Whole Milk, Nut Juices on the Rise 4 Source: Dr. John Newton, AFBF

Milk Production: 2017 Growth Rates 5

Consolidation Will Pick up Pace 6

Policy Developments 7 Farm Bill Title I Program – Margin Protection Program for Dairy Producers Reformed in February 2019 to reduce premiums for small producers (up to 200 cows) by 70% Milk finally getting crop insurance programs: Livestock Gross Margin for Dairy Cattle – no longer a pilot program Dairy Revenue Protection – new area revenue insurance, currently under development NAFTA: Losing market access to Mexico would be a major blow to U.S. dairy sector