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Industry News

Read coverage of current events and news affecting dairy producers and the industry.

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U.S. President Donald Trump joined Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto in signing the U.S.-Mexico-Canada Agreement (USMCA) during the G20 Summit Meeting in Buenos Aires, Argentina, Nov. 30. And, President Trump and Chinese President Xi Jinping declared a 90-day truce in an escalating trade war between the U.S. and China, with the U.S. putting on hold an increase in import tariffs scheduled for Jan. 1, 2019.

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Higher milk prices and steady feed costs pushed October 2018’s Margin Protection Program for Dairy (MPP-Dairy) margin to its largest of the year. There will be no MPP-Dairy payments at any level for the month.

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The outlook for dairy prices will be somewhat brighter moving into the middle of 2019, with a much more bullish forecast possible if the U.S. and China can reach a trade agreement, according to Dan Basse, economist and president of AgResource Company.

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Finding and keeping a milk market has become less certain for dairy producers. Now, with culling at a record pace, farmers selling cows and other dairy-beef cattle for slaughter could face additional challenges as well.

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After a three-year run when annual U.S. per-capita dairy product consumption rose from the year before, 2017 yielded a small decline in overall consumption. The decrease was mostly attributed to a continuing drop in fluid milk consumption.

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