There has been talk of some consumers snubbing restaurants as of late due in part to rising menu...
Dairy fans, brace yourselves. Cheese prices have slipped this week, and CME spot butter? Let’s just say it’s skating at its lowest non-COVID price in over a decade.
So what's going on with dairy? Flashback to 1993: the Cowboys were hoisting the Lombardi Trophy, and America’s milk cow herd was massive. Fast forward to now — that herd is again at its largest since that Super Bowl. Coincidence? Maybe not.
Milk producers have been adding margin by crossbreeding beef calves with their dairy cows — the ag world’s version of building a “super team.” But even super teams can struggle when the scoreboard looks rough.
October’s All Milk Price Received is estimated at its lowest for that month in seven years — down a jaw-dropping 25% since January. That’s rougher than a Buffalo Bills playoff loss (sorry, Bills Mafia).
Bottom line: milk farmer margins are declining.
With cheese and butter markets trending bearish, this might be the perfect moment to revisit price caps — contracts that let buyers ride the wave down while staying protected.
We can help you with this. Hit us up at the links above — let’s talk strategy before the next whistle blows.
