Turbulence that has shaken the dairy industry the past few years could subside in the second half of this year if feed prices fall or at least stabilize, a Purdue Extension dairy specialist says.
Although the first part of 2013 likely will be stressful for producers, Mike Schutz said those who hold on should benefit from a relatively neutral economic outlook for the remainder of the year.
“The dairy industry is highly dependent on what happens with feed prices,” he said. “We’re hopeful that feed prices will be reduced or stabilize with the planting of the 2013 crop, which will also hopefully help producers get back to approaching at least break-even or somewhat profitable prices.”
The 2012 drought hit the dairy industry hard by decreasing availability of feed while also increasing feed prices. Most dairy producers grow their own forages, but with drought-induced short supplies, many had to buy expensive forage from other growers.… Continue readingRead More »