Cheese Trade Volatility Influencing Milk Prices

The cheese and whey markets have been volatile due to their dependence on trade, and Mike Brown, vice president for dairy market intelligence at T.C. Jacoby & Company, says this is especially important for Wisconsin dairy farmers, since about 90 percent of the state’s milk goes into cheese. While the whey market behaves a little differently, he expects to see renewed investment in whey as Wisconsin continues producing award-winning cheeses. Brown notes that although the regulated minimum for Class III milk prices dropped with the Federal Milk Marketing Order update that took effect June 1, lower milk checks are also tied to other factors, including revenue declines for cheese processors.

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