Surplus keeps milk prices low in Wisconsin dairy note
UW Platteville extension dairy economist Rob Cropp notes milk prices remain around 12.80 dollars per hundredweight for 3.5 percent milk and 13.10 for 3.67 percent fat as surplus production continues. He warns higher production and borrowing to expand herds could worsen surpluses, keeping prices flat for the next year or two. August production rose 2.6 percent from a year ago, with 73,000 more cows on milk nationwide. Wisconsin’s output through Sept 5 is up 2.1 percent, while August Wisconsin production climbed nearly 3 percent.
Milk production and prices edge on in early fall
New York up 1.5 percent Minnesota 2.3 percent Pennsylvania 4.6 percent in August over a year ago. Five states account for 65 percent of the rise. Dr. Cropp notes US cows up 201,000 versus two years ago. Milk sales improve, cheese down 1.3 percent, butter down 9 percent, nonfat milk up 35.7 percent. July consumption 10.2 billion pounds vs production 11.3. August Minnesota Wisconsin price for 3.5 milk at 12.47, down 6 cents from July. Reagan plan targets milk support at 750 million in next market year beginning Oct 1. Prices unlikely to rise much for a year or two.
MENTIONED IN THIS ARTICLE
Dr. Cropp
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Cropp
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1981 Farm Outlook Turns Disappointing says UW Extension
Agricultural economists warn 1981 ends with lowered net farm income near 22 billion, down about 10 billion from projections. Dairy and corn sectors face flat or falling prices due to high costs, interest rates, and potential policy shifts while hogs and beef may rise modestly in 1982.
MENTIONED IN THIS ARTICLE
USDA
Department
Gerald Campbell
Uw-Extension
Richard Klemme
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