January 20, 2015
The global dairy industry has seen significant volatility over the past year. After milk sales reached record highs in 2014 with prices climbing to $25 per hundredweight, some milk co-ops are now requesting that their farmers dump a portion of their milk or pay a premium for additional transportation fees and low prices amid a global glut that is expected to see prices pushed down to approximately half of what they were last year at $13.50 per hundredweight. Less than a year ago milk production could not keep pace with demand and farmers expanded their herds and purchase equipment in order to increase output, however, after Chinese buyers pulled out of the market due to large milk powder stockpiles in the country and Russia’s banning of trade with the West, an immediate surplus became a serious issue. To read further:
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