The report offers this outlook on dairy:
“Milk supplies in the U.S. and around the world will tighten in 2022 as dairy farmers reduce herd sizes in response to cost inflation pressures. The cross current of resilient domestic and global demand for dairy products with the slowing growth in milk supplies will give an upward lift to milk prices in 2022. Combined with softer feed costs following big corn and soybean harvests, producer margins will finally improve. However, high costs for labor, construction, and freight will limit upside margin potential and dampen milk production growth. For dairy processors, tighter availability of milk will mean some processors get squeezed.”
The full report can be found here https://www.cobank.com/documents/7714906/7715332/Year-Ahead-Report-2022.pdf/eddc2de2-7524-b56c-a555-21d103167ce8?t=1639022329774
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