Major dairy cooperatives estimate that producer pay prices for 2017 will average about $2.00 per hundredweight higher than last year. Read more about prices and global demand markets in this brief outlook on Northeast dairy.
Despite a $1.39/cwt. drop in milk prices, dairy farms showed remarkable resilience with slightly improved financial results in 2016 compared to 2015. Read more about the results recently reported during a webinar held by Farm Credit East on the 2016 Northeast Dairy Farm Summary.
In the Northeast, statistical pay prices in 2017 are likely to increase above 2016 levels, providing improved margins. However, finding a home for milk in the Northeast conintues to be a challenge as our supply continues to exceed regional demand and processing capacity.
Dairy farmers have proven themselves remarkably resilient in the face of adverse economic conditions. While two consecutive years of low prices have had an impact on the financials of Northeast dairy producers, 2017 promises a moderate recovery.