Class III milk futures are trading in the $15-to-$16 territory. Minnesota Milk Producers Association Executive Director Lucas Sjostrom says the price received on the farm is more variable than ever. “We’ve been in a weird spot over the past 24 months where you may have a $5 variance from one farm to the next which is unprecedented,” said Sjostrom. “It is all due to market conditions and the processor your send to.” Minnesota lost 58 dairy herds during December, which is one of the worst months on record. “Dairy is really in a spot today where farmers are making plans for the next 20 years or just planning on how they make it through the next 12 months.” The farms in the middle, with 300-to-1,000 cows, may be having the biggest issue with the low milk prices. Sjostrom says the most successful dairies in the mid-range have found a niche. That may include dairy beef production or custom harvesting. Listen to the full interview.
