Can we impact 2023 and beyond?
Jason Karszes, PRO-DAIRY senior extension specialist, and Dr. Chris Wolf, E.V. Baker Professor of Agricultural Economics, Dyson School at Cornell University, released this white paper in PRO-DAIRY e-Leader newsletter, distributed to an email list of nearly 7,000 dairy producers, agriservice, and legislators.
So far, 2022 is shaping up as a year where cash and profits may rebound within the dairy industry to levels that have not been seen for a few years. While inflation and supply chain issues are driving costs up on dairy farms, milk prices are strong and appear to have generated stronger cash positions through the first third of the year. With the strong cash positions, businesses can focus on management strategies to maximize the opportunity associated with the stronger positions this year to better position the business for the future. With uncertainty on how long the earnings will stay at these levels, how best to continue to capture the current margins, and how to utilize the margins to position the business for when lower level of earnings return are two key management questions.
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