Farmer's Report

Dairy Trends - April 19, 2019


Incremental cream demand from seasonal Class 2 producers has slowed run rates in certain areas, but overall cream availability is decent. Butter demand has improved ahead of the spring baking season as foodservice, retailers and wholesalers stock up on inventory. Prices remain very stable.


Production rates are still going strong in the U.S. due to the good amount of liquid milk still available for processing. While current cheese prices are still incentivizing strong production, some manufacturers are starting to curb their outputs, mindful of potential oversupply in the market.


The seasonal demand has been underwhelming to the trade after the rapid pace experienced in 2018 from all the promotional activity. With Easter now upon us, we have started to see some pick-up in purchases, which should help to stabilize or boost prices off these lows. Seasonally, the few weeks following the spring holidays are the slowest time of year for demand.


Milk volumes are adequate to meet processing needs in all regions of the U.S. We are seeing steady to slightly increased production, with manufacturers at or near production capacity. Cream supplies are plentiful, but expected to tighten as seasonal ice cream demand increases.