Butter and non-fat dry milk prices started the year in a deep slump, resulting in milk checks that didn’t even cover costs. According to dairy economists at CoBank, June Class IV milk futures have climbed nearly $7 per hundred since New Year’s, trading over $22, they say, an unprecedented move in just five months.
Further, analysts at CoBank point to two very different reasons. One, record butterfat exports. And two, strong protein demand, reducing supplies.
Things like yogurt, cottage cheese, and other high-protein dairy shakes, all in higher consumer demand.
Audio Reporting by Mark Oppold for Southeast AgNet.
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