Beef Market Offsetting Lower Milk Check

Class III milk prices are in the $16 territory, and Class IV are in the $14 range. A dramatic drop in cheese and butter prices is responsible for the lower milk check. Despite the downturn in milk prices, Ever.Ag market analyst Mike North says the beef market has propped up the bottom line for dairy farms. “Only a few years ago, it was at about $1.50 per hundredweight in combined sales of calves and cull cows That has grown to be, depending on the mix of breeding for beef and the amount of culling taking place, we’re seeing dairies bringing back home anywhere from $3 to upwards of $4.50 per hundredweight on top of what their milk check is,” said North. “That beef revenue has given a lot of staying power even with the lower milk prices.”