Minnesota Dairy Farmers Bracing for Low Milk Prices in 2016
UNDATED -- The projected milk prices for 2016 means good news for consumers at the grocery store but bad news for farmers. Plentiful supply and limits on exports means milk prices are expected to remain low for the second consecutive year.
Bob Lefebvre is the Executive Director of the Minnesota Milk Producers Association. He says says global uncertainty means they are unable to export their dairy products overseas to places like Russia and China. Lefebvre says until the political landscape stabilizes and exports can resume to normal levels, there will be an over-supply of dairy in the market place.
Lefebvre says dairy farmers experienced a very good year in 2014 and as a result produced 4% more milk last year. But, he says the global uncertainty and a lack of processing capacity means farmers will be dealing with over-supply and lower prices in the short term.
The good news, according to Lefebvre, is that the outlook for Minnesota milk producers in the long term is very strong.