Milk production is increasing faster than demand is recovering, making 2021 a challenging year for dairy farmers, said Peter Vitaliano, NMPF’s chief economist, in an NMPF podcast.
“On balance, things are improving a little bit” in dairy demand, “but they're still falling short of the milk production rate of increase,” Vitaliano said. Still, bright spots remain for the medium- and longer-term dairy outlook. Demand for U.S. dairy exports is at record levels, and demand for dairy away from home should increase as the COVID-19 pandemic fades, he said.