COVID-19 Pandemic Recovery is Propping Up Dairy Demand and Prices
Dairy Report 042321
Domestic demand and use of dairy products continues to increase. The news comes as the U.S. continues its recovery from the COVID-19 pandemic.
According to the latest dairy market report from Dairy Management Incorporated and that National Milk Producers Federation (NMPF), a gradual recovery of food service and in-person schooling is raising the milk price forecasts for later this year.
The groups say the positive developments are in a race against new virus variants and premature relaxation of behavioral measures to protect against transmission.
As far as dairy exports, shipments surged in February while dairy imports have dropped to multi-year lows. Also, milk prices remain well below a year ago and payments under the Dairy Margin Coverage Program remain significant.
Trouble Brewing in Brazil
Meanwhile, dairy prices are taking a tumble in Brazil. Government aid last year helped prop up prices, but that aid has now ended. Reuters reports it's forcing retailers and wholesalers to heavily discount prices to move product.
Experts say it's resulting in an almost 9-percent decline in milk price over the last three months. It could also lead to Brazil importing fewer dairy products in the coming months.
