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High dairy commodity prices combined with low feed costs yielded high profit margins for dairy farmers across the US during 2014. This “perfect storm,” as one Wisconsin dairy producer referred to it, was welcomed by an industry that has experienced some tight years recently.
Low dairy production in other major milk-producing regions around the world drove up demand for US-produced dairy products – contributing, in part, to the high prices of raw milk, cheese and butter.
According to the U.S Dairy Export Council (USDEC), US dairy exports increased 14% during the first half of 2014 vs. the same period in 2013, setting a record averaging $653.6 million per month.
This strong performance has allowed many dairy producers to reinvest in their operations, something they weren’t able to do following the 2009 recession, which will hopefully keep the milk business booming.