Weekly Update

MooLand Dairy Cooperative Weekly Update

Current Dairy Prices

As of this week, we are seeing a slight uptick in dairy prices across the board. The current average price for milk stands at $18.50 per hundredweight (cwt), which is a 2% increase from last month. Cheese prices have also seen a modest rise, now averaging $1.75 per pound, up from $1.70 per pound last week. Butter prices remain relatively stable at $2.25 per pound.

Factors Influencing Dairy Prices

Several factors are influencing these changes in the market:

1. Global Demand: There has been an increase in global demand for dairy products, particularly from Asia. This demand surge is driven by a recovering economy and a growing middle class with increased consumption of dairy products.
2. Feed Costs: Feed costs have seen a notable increase due to unfavorable weather conditions affecting crop yields. This has a direct impact on production costs, thereby influencing dairy prices.
3. Supply Chain Disruptions: Ongoing supply chain issues, including transportation bottlenecks and labor shortages, are contributing to fluctuations in dairy prices. These disruptions are expected to continue in the short term, affecting the market's stability.
4. Policy Changes: Recent agricultural policies and trade agreements are also playing a role in shaping the dairy market. Changes in export tariffs and subsidies have created new opportunities and challenges for dairy producers.

Expected Prices for the Next Four Months

Based on current trends and market analysis, we expect the following price changes over the next four months:

• August: Milk prices are projected to reach around $19.00 per cwt, with cheese prices averaging $1.80 per pound and butter prices remaining stable at $2.25 per pound.
• September: Milk prices may see a slight dip to $18.75 per cwt due to anticipated seasonal production increases. Cheese prices are expected to hold at $1.80 per pound, while butter prices might rise slightly to $2.30 per pound.
• October: As the holiday season approaches, we anticipate a boost in dairy product demand. Milk prices could climb to $19.25 per cwt, cheese prices to $1.85 per pound, and butter prices to $2.35 per pound.
• November: Continuing into the holiday season, milk prices are forecasted to peak at $19.50 per cwt. Cheese prices might reach $1.90 per pound, and butter prices could increase to $2.40 per pound.

Market Outlook

While the market remains dynamic, we are cautiously optimistic about the coming months. The ongoing global demand and policy changes suggest a favorable market for our products. However, it is crucial to remain vigilant regarding feed costs and supply chain issues, as these factors could cause unexpected fluctuations.

We encourage all members to stay informed and engaged with the latest market developments. Your input and feedback are invaluable as we navigate these changes together.

Thank you for your continued dedication and hard work. If you have any questions or need further information, please do not hesitate to reach out.

Best regards,

Max Farmer

Chief Executive Officer

MooLand Dairy Cooperative

Stay tuned for more updates and let's work together for a prosperous season ahead!

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