As product and milk markets have climbed, producers are beginning to regain some sense of hope after being hit by the impact of what has become the worst drought in our lifetime. I am asked constantly whether this price move can last and, if so, how long. The quick response, of course, is that neither I, nor anyone else, have any absolute answers to those questions. There are some things worth considering, however, that can help frame our bias going forward. Most exciting among these things is the growing world appetite for dairy products.

By the end of 2011, the dairy industry thought it had taken a turn to better days, but instead it was just a “U-turn” to higher feed prices and dropping milk prices in 2012. Some operations still experiencing weak legs from the 2009 downturn might not be able to pick themselves up off the mat this time. If all of your options have been exhausted, including reorganization under Chapter 11, then you might decide it is time to throw in the towel. For those who go this route, it is very important to consult with your CPA on the tax implications of liquidation.

“You may not be interested in global macroeconomics, but global macroeconomics is interested in you, your business, your family and your personal lives,” Dr. David Kohl said recently at the Professional Dairy Producers of Wisconsin (PDPW) Business Financial Decision-Making Conference. A professor emeritus of agricultural and applied economics at Virginia Tech, Kohl explained the new normal is black swans, volatility and extremes. In order to play the game of volatility, it is important to understand the conditions that will have an impact. He went on to highlight six key game-changers to watch as we enter a new year.

In 2009, female veterinarians began outnumbering their male counterparts. Food animal medicine continues to be male-dominated but female numbers are on the rise. In 2006, food animal-predominant veterinarians in private practice were 17 percent female. That number has grown to 19 percent as of 2011, according to American Veterinary Medical Association market research statistics. It’s a trend that many in the field expect to continue. “We have been seeing a shift toward mostly female students in the past several years from when we began receiving preceptors eight years ago in our practice’s mentoring program,” says Dr. Angela Daniels. “I think that the current male predominance in food animal medicine is coming from established practitioners because, certainly, the number of people entering into food animal practice appears to be heavily dominated by women.”