Tariff Uncertainty Pressures Dairy Markets

Dairy markets are feeling the strain as uncertainty surrounding trade tariffs impacts milk prices. Mark Newman, a market analyst with CIH, highlighted the recent price volatility, noting that Class III milk has dropped significantly in recent months. “You know, we were at $19.50, even $20. And now you’re seeing nearby Class III at $17. So, it’s fallen to two to three dollars just from these tariffs,” Newman explained. With tariffs on Mexico and Canada currently in a moratorium until April 2, the market remains in a holding pattern, awaiting further developments.  In response to fluctuating prices, dairy producers are taking steps to protect their margins, particularly on feed costs. “A lot of guys, a lot of our clients have been booking their physical meal, whether that be canola or soybean meal,” Newman said. He also emphasized the importance of maintaining flexibility in risk management strategies, particularly during the seasonal lull in demand.