Lynda Foster operates a 180-cow, Lely robot dairy with her family near Fort Scott, Kansas. A member of Dairy Farmers of America (and Progressive Dairy’s editorial adviser board), she admits to being an eternal optimist.

The two dairy behemoths on the opposite ends of the Southwest – Texas and California – have been on somewhat divergent paths over the past couple of years. Entering 2019, however, producers in both states share some common economic concerns.

The improved outlook for milk prices in 2020 is providing some degree of optimism for producers, mixed with a sense of relief, according to Chris Laughton, Farm Credit East’s director of Knowledge Exchange.

“Apprehensive” is the best term to describe the mood of dairy producers in Idaho, according to Rick Naerebout, chief executive officer of the Idaho Dairymen’s Association.

Editor's note: This article has been updated from the original version to include additional comments from Dairy Farmers of America. Numerous U.S. dairy cooperatives have filed court documents objecting to a Dean Foods bankruptcy proceeding motion related to the sale of a majority of assets to Dairy Farmers of America (DFA). 

Improved ingredient sales, particularly to Southeast Asia, helped U.S. dairy export volume post its fifth straight month of growth in January, and dairy replacement heifer sales also started the year strong.

The USDA’s March World Ag Supply and Demand Estimates (WASDE) report lifted the 2020 milk production estimate, citing larger expected cow numbers. In combination with trade estimate adjustments, the increase in milk supply is projected to pressure prices lower for milk and most dairy products.

Digest Highlights

• Dairy meetings canceled due to coronavirus concerns
• NFU calls for dairy policy reforms with eye on supply
• February Class III price down a nickel
• Dairy margins continue to face headwinds
• Vermont value-added workshop planned
• Trickling Springs Creamery owner pleads guilty to federal fraud charges
• Georgia dairy producers eligible for Hurricane Michael recovery funds
• ‘Livestock mortality composting’ insights sought
• Wisconsin creates water quality credit clearinghouse

If you’ve read the news or a social media feed this year, chances are you’ve seen a headline about the environmental impact of animal agriculture. Sustainability, the environment and climate change are hot topics right now.

The outlook for Dairy Margin Coverage (DMC) program payments has fluctuated dramatically due to fears related to the coronavirus and its impact on global markets. However, January’s margin remains above the level triggering any DMC indemnity payments.