WASHINGTON — Dairy prices have rebounded dramatically because farmers quickly adjusted their milk production and consumers boosted retail demand as government purchases kicked in to help offset lost food-service sales, said Peter Vitaliano, chief economist for the National Milk Producers Federation.
“That has resulted in a very, very rapid change in the market price outlook,” Vitaliano said in an NMPF podcast released today. “The markets currently are looking like there’s going to be a very strong rebound, and prices will get to a more normal level in the second half of this year,” he said.
Vitaliano, who writes NMPF’s monthly Dairy Market Report, said the continued spread of the coronavirus and whether farmers quickly increase milk production remain significant questions that will affect dairy’s further recovery. To subscribe to the Dairy Market Report, click here.
–National Milk Producers Federation
For more articles concerning the dairy industry, click here.