The Global Dairy Trade Index has now recorded its third consecutive increase after a sharp decline in July.
The index rose 5.5 percent after the latest trading event and now stands at 1,146, after slight increases in the last two trading days. After the second auction in July, the index fell by almost 7 percent. Average prices rose for most products.
Industry analysts expect the dairy industry to reach a certain level of profitability by the end of the year.
“It’s highly unusual to have a high milk price and a low feed price at the same time. You almost always have to price the feed if the milk price isn’t right and the milk if the feed price isn’t right. Right now you have that ability and it’s a very productive environment for dairy producers right now. Even though many dairies are producing less milk due to the ongoing avian flu, it’s still working for them and it’s still a boost after a brutal 18 months of losses and a good sign that they’re going to have very high profitability on their farms at least through the end of the year,” Shawn Hackett said.
Hackett says now is a good time for producers to make cash sales, secure feed and seek a guaranteed margin.
