Delta blues felt throughout dairy sector
A dairy analyst says he doesn’t expect COVID surges to impact demand as severely as in 2020 but they continue to limit markets.
Ben Laine with Rabobank it could take few months for dairy demand to pick up.
“It is getting a little bit of pause, a little bit of hesitation in terms of are we going to stay on that same trajectory, so I think we’re taking a little bit of a break in terms of the demand strength that we had seen building,” he explains.
Laine says most food service establishments have adapted to the pandemic but he’s still watching how schools, especially following USDA’s extension of the free school lunch program, will impact demand.
“I think the option of free school lunch combined with kids largely being back to physically wait in that lunch line are going to be positive for demand for dairy,” he says.
Rabobank recently releases its global dairy quarterly report which Laine says projects farmgate milk prices on a high side for much of the world, but rising inputs and downside risk could have a sense of Delta blues.