A dairy analyst says expanding herds and false market support are finally waning after government intervention buoyed producer positions over the past year.
Ben Laine with Rabobank tells Brownfield dairy cow numbers in the past few months have started to slow which he believes is a sign of extended margin pressure.
“A lot of producers came into 2021 with a relatively comfortable position and could withstand some margin pressures from the inflation and higher feed costs, but I think we’re starting to see that show up and impact culling, cow numbers, and a slight decrease in the herd,” he says.
