Dairy prices have rebounded dramatically because farmers quickly adjusted their milk production and consumers boosted retail demand as government purchases kicked in to help offset lost food-service sales, said Peter Vitaliano, chief economist for the National Milk Producers Federation.
“That has resulted in a very, very rapid change in the market price outlook,” Vitaliano said in an NMPF podcast released today. “The markets currently are looking like there’s going to be a very strong rebound, and prices will get to a more normal level in the second half of this year,” he said.
Vitaliano, who writes NMPF’s monthly Dairy Market Report, said the continued spread of the coronavirus and whether farmers quickly increase milk production remain significant questions that will affect dairy’s further recovery. To subscribe to the Dairy Market Report, click here.
To listen to the full discussion, click here. You can also find this and other NMPF podcasts on Apple Podcasts, Spotify, SoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.
The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.