The June Dairy Margin Coverage (DMC) margin was announced earlier this week at $3.65 per cwt. This sets a record low for the second consecutive month. It is also the first time in program history that triggers an indemnity at every available margin coverage, falling below the $4.00 per cwt catastrophic margin coverage that is…
At $14.91 per cwt, the Class III price dropped below the $15 mark for the first time in more than three years. The June price is $9.42 per cwt less than June 2022. With just a few days left in July, it is possible that July Class III will fall below $14, also for the…
The Dairy Margin Coverage (DMC) feed cost has increased year-over-year since 2020. The DMC feed cost is calculated by summing the USDA announced average corn, soybean meal (SBM), and superior alfalfa hay prices, all on a hundredweight basis. The DMC program began in 2019, and the DMC feed price that year averaged $8.99 per cwt…
Although U.S. cow numbers peaked in March at 9.446 million, falling 16,000 head since then to 9.430 million in April and May, cow numbers are still above what they were one year ago. Increased cow numbers and increased milk cow efficiency have led to milk production increasing year-over-year (YOY) for the first 5 months of…
Further degradation of the Dairy Margin Coverage (DMC) margin continued through May. On June 30, the May DMC margin was announced as $4.83 per cwt. This represents a record low, falling 20 cents below the previous low of $5.03 per cwt set in August of 2021. Based on June 30 DMC projections, feed costs are…
The Year-over-year (YOY) growth in the U.S. herd size and milk per cow continues to increase total milk production across the country. Ample domestic milk supply along with increased international competition from the European Union are driving milk prices down. With drought conditions across a large part of the U.S. and geo-political issues in other…
The United Nations (UN) is a global alliance whose objective is to broker and secure peace and protect human and international rights. The UN is made up of 193 member countries which includes the U.S. Collectively, UN nations cover roughly 89% of the inhabitable land area and represent more than 99% of the world’s population….
The dairy industry plays a crucial role not only in the communities where dairy farms and dairy processing exist, but it is also very important to individual states and the entire U.S. economy. Every two years the International Dairy Foods Association (IDFA) conducts a dairy economics impact study. In honor of June Dairy Month, IDFA…
During the last half of 2022, dairy economists were already warning the industry that milk price was going to fall and feed prices were going to be lower but stay historically high in 2023. Predictions were for margins to be tight and perhaps negative for many dairy farmers this year. Unfortunately, these predictions are becoming…
June Dairy Month is now in its 87th year. I am sure it looks a lot different than it did back in 1937 when it began as National Milk Month and ran from June 10 to July 10, but the main goal is still the same: to promote dairy’s nutrition and wellness attributes to boost…
