All week, dairy farmers have begun to see a rapid decline in cheese prices. ever.ag Vice President Ryan Yonkman says this is a perfect example of a time to showcase the type of risk farmers have been experiencing for a while.
Transportation logistics, labor shortages and workforce availability, and supply chain issues have contributed to the price decline, despite there being enough cheese to go around.
Yonkman explains that global milk prices recently brought new highs at the Global Dairy Trade Auction, while U.S. prices fell. This opens the door for new export opportunities. Global milk production remains flat, and Yonkman explains that dairy farmers need to use every risk management tool available until milk prices that are seen in the futures board become real.
Wisconsinites are no stranger to the recent incline of farm bankruptcies as dairy farms become less profitable. Yonkman warns of more dispersal sales, where the bottom 20-30 percent of the herd go to make hamburger.