Mixed forecast for future milk prices
UNITED STATES - “Global economy” is a term farmers are learning the hard way.Penn State dairy economist Ken Bailey is optimistic that despite near record lows this year in the price farmers are paid for their milk, 2007 will see significantly higher prices.
“The futures markets are taking off,” he said. “Cheese, non-fat dry milk and whey are strong.”
The reason for the bright future is an increased global demand for protein.
Indications are the demand will push the price per hundredweight dairy farmers have received in 2006 from $12.90 up to $15 next year, Bailey said.
Source:The Tribune-Democrat