Economists discuss the milk price outlook against the backdrop of higher dairy cow culling, slowing milk output and $8 corn.
It’s reasonable to expect milk prices at $20 per cwt. or higher in the last quarter of 2012 and into early 2013, says dairy economist Bob Cropp.
Declining milk production, higher cattle slaughter rates, and decreased milk-per-cow yields point to a supply-demand situation that favors strong milk prices, Cropp says in an August 2012 dairy outlook in a podcast with University of Wisconsin colleague Mark Stephenson.
Cropp and Stephenson also discuss what’s happening with cheese, butter and nonfat powder markets, as well as feed prices and dairy exports.