There was a rally in the dairy markets at the beginning of this week but unfortunately it was very short lived. Cody Koster is an Analyst with Rice Dairy LLC in Chicago and he says that the rally we saw might have been due to the National Milk Producers Federation (NMPF) and International Dairy Foods Association (IDFA) proposal addressing the Milk Crisis Plan.
“Once people kinda settled down off of that news” and realized that the American economy is still at screeching halt, the rally ended. Koster says we need people to get back to work and for the food service industry to open back up in order to see some serious changes in the markets.
Koster says that he has also been getting reports of milk dumping happening in states all over the country, including “Texas, California, Michigan, New York,” and Wisconsin, of course. Koster worries what this will continue to do for already decreased milk checks as “the dumping is not over” and more companies are asking producers to dump.
As far as what the markets will do once all of this over and people are back at work Koster says he does “believe there will be a sharp rebound…as long as the economy takes right back off.” Koster says once restaurants are open again he assumes that “the demand for cheese will be even greater” because we’ve all been cooped up for so long. And, with summer right around the corner people will be out socializing and consuming more cheese with foods such as brats and burgers.
Farm Director Pam Jahnke caught up with Cody Koster on the morning of Thursday, April 9th. To hear their full conversation you can click the play button below:
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