|Missouri Dairy Business Update|
|Volume 7, Number 3|
According to the USDA Dairy Outlook, "Rapidly rising feed prices have continued to raise costs for dairy producers. Corn
and soybean meal prices have risen, but probably more important for dairy
producers, have been high prices for alfalfa hay. Hay prices are expected to rise
further as supplies tighten, but should decline later this year as supplies increase
with expected improved conditions this spring. Relief in the form of higher milk
prices for 2007 could improve profitability for the most efficient producers."
According to Bob Cropp's March Dairy Outlook, "These much higher prices will continue to be driven by high feed prices, a decline in cow numbers, below normal increases in milk per cow, continue strong exports keeping milk protein prices relatively high and expected continued good growth in commercial disappearance. Both the CWT export assistance program and the recently announced planned to remove 52,000 cows under the fourth round of the hired buyout program add support to these prices."
Future MILC estimates may be derived from the following formula:
Historical Missouri milk prices may be found at: http://agebb.missouri.edu/dairy/mkt/index.htm
Hedging Opportunity Chart for next 12 Months http://www.uwex.edu/ces/milkmarketing/