The Monthly Call Provides Dairy Industry Updates to Pennsylvania Producers
The Center for Dairy Excellence’s monthly “Protecting Your Profits” call will be held on Wednesday, September 25 at noon. Led by Zach Myers, Risk Education Manager with the Center, Pennsylvania dairy producers will learn about current market dynamics and the impacts on profitability.
“Dairy cow slaughter is up, milk production is flat to declining, and the national dairy herd is shrinking month-over-month and year-over-year. This combination is reflective of a constricting domestic milk supply,” Myers said. “Because of this, I think Pennsylvania dairy producers are seeing an improvement in Class III milk futures prices.”
Myers will highlight milk futures prices in more depth during the call and discuss the following data:
- As of Sept. 13, 2019, Class III dairy futures are trading higher over the next six months compared to the same time last month, with the next three months trading from $18.31/cwt to $19.19/cwt. Class IV prices are still declining.
- Class III milk futures are averaging $17.84/cwt for the next 6 months, $0.33/cwt higher than this time last month.
- Class IV prices continue to trade below Class III and are averaging $16.66 for the next six months, $0.22/cwt lower than last month.
- July dairy cow slaughter was up 7.09 percent over July 2018.
- July milk was virtually flat from last year, down only 0.02 percent compared to July 2018.
- Dairy cow numbers continue to fall and were down 0.73 percent from July 2018.
Producers will also learn about risk management options, including the Dairy Revenue Protection program. Dairy-RP is a quarterly revenue-based insurance program administered by the USDA’s Risk Management Agency. Dairy-RP policies for 1st quarter 2020 to 1st quarter 2021 are now available for purchase through an Authorized Insurance Provider through December 15, 2019.
“Our monthly call allows dairy producers to look at the industry from a regional, national and global perspective and determine the best risk management tools for their business,” Myers said. “Every dairy is different, but in an uncertain marketplace, it’s more important than ever to understand your options and develop a plan that can help you maintain your profits, even when milk prices fall.”
Join the Center on September 25 to find out how these programs and the conventional price risk management tools can fit in to your marketing plan. All are welcome to participate at no cost. To register, call 717-346-0849 or email Myers at zmyers@centerfordairyexcellence.org.
The call will start promptly at noon and last approximately 15 minutes. Calls are recorded and posted on the Center for Dairy Excellence website for those who are unable to join the live session.