Dairy markets recovering
Dairy markets continue to improve after bottoming out in April.
International Dairy Foods Association CEO Michael Dykes says the dairy industry had to chart a new course after COVID-19 tore apart the supply chain.
“In April, we estimated the dairy industry expected to lose between $5 and $10 billion in sales over the next six months. We thought we’d have about 10 percent of the milk without a home. (but) Things are looking much better.”
He tells Brownfield retail sales are coming back as states reopen and food service gets itself up off the mat.
“Retail cheese demand is strong, up nearly 35 percent. Butter is up 45 percent, (and) ice cream’s up nearly 25 percent.”
Dykes says USDA purchases, including through the food box program and Section 32, are helping. And Coronavirus Food Assistance Program payments will help too.
“Things are looking up. Calendar year through March, exports were up 17 percent on a value basis and eight percent on a volume basis.”
The recovery can be seen in milk futures, where the June contract has moved from a low of $10.78 on April 22nd to nearly $18.50 per hundredweight at the end of May.