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After several years, good news on horizon for milk producers

Jeff Butcher |
The milk production is a business where almost anytime you may hear complaining and with a reason: Almost everywhere producers are getting low price that in some cases don't justify the production at all.

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Topics: MILK    PRODUCERS   

However, after five years of low milk prices, dairy farmers in U.S. are seeing a better days. The price is about $1.30, $1.40 higher per hundredweight on milk than this time last year.

On the other hand, on farm milk prices are following the somewhat stronger, but volatile cheese market. But there are problems, too. U.S. milk production per cow slowed somewhat and cow numbers are down 30,000 head so far this. The number is negative in some months and flat basically for the first half of the year.

Across the pond, milk processing capability in Wales has fallen, naturally leads to an increase in milk transported to England for processing. Welsh milk production is estimated to have reached 1,971m litres in 2018/19, an increase of 123m litres (7%) since 2016/17.

The problem in the last few years was increased competition on the market and excess capacity. And of course, where is milk there are milk products. If you are a milk producer, pressures on other products are reflectiong on your milk prices.

Market returns are a combination of the price received for the milk and for any products made with the excess cream. If you can't to divert excess milk and or cream to alternative uses, your margins will be highly reliant on sales of bulk cream.

In the UK there were some increases between June and December 2018. Since then, prices have fallen. As a result, processors’ overall income will have been reduced since the beginning of the year.

The hope is to see the overal milk production, and while there are no certain numbers there, there are signs that better days may come. Slightly increased prices and somewhat smaller production shows hope. â– 

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