Univerisity of Wisconsin dairy economists Bob Cropp and Mark Stephenson provide more analysis of the May milk production report, released by USDA last week, in this 10 minute video.
Some high points:
• Mailbox milk prices in California lag Midwest prices by $1 to $2/cwt and feed prices are higher. That’s probably why California milk production continues to decline when the Midwest is up 4% or more.
• There’s been so much production in Michigan and parts of the northeast that surplus milk has been discounted up to $7/cwt looking for a home.
• Enrollment for Dairy Margin Protection Program opens July 1. “Don’t be the first in the door to sign up,” urges Cropp. There’s just too much uncertainty both in milk prices and the growing crop to make any decisions just yet, he says.
View the whole podcast here.