According to the National Milk Producers Federation, an ABC member, 2020 looks to be a year of continuing recovery for dairy markets, with the return to positive year-over-year export growth for many of the important U.S. dairy export products and a drop in butter imports. Milk production growth appears to be slow, though markets were spooked when, following almost a year of little change, annual growth of U.S. milk production jumped to over one percent in September and October. November’s preliminary number showed growth dropping back below that, helping prices at year’s end. Fairly steady price improvements throughout the year for cheese, nonfat dry milk and milk itself made 2019 a year of general price recovery. Still, heading into the new year, weaker butter prices, which dropped below $2.00 a pound for the first time in over three years, gave markets something to watch, making the balance between increasing global demand and domestic supply growth crucial to prosperity in 2020. More >>
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