February 2022 Update

As I am sure you aware, prices in the dairy market are crazy high right now. I thought it would be improving (going down) but instead, it has gotten worse…much worse.  There is never just one thing that causes the kind of disruption in the market we are now experiencing. Certainly, demand for fat (read: people want food with fat – the more, the better) is a factor. We have seen a 46% increase in the price of butterfat in the last 6 weeks. Equally as influential, is the reduction of the cow herds producing milk. Less cows eventually means less milk. This milk is not just for drinking, it, and its components, are used to make cheese, ice cream, and yogurt, among other foods. When demand for these foods rises and the supply of ingredients for these foods lessens, we are left with the classic supply/demand issue where prices rise when demand rises, and supply can’t keep up. Also contributing to this dilemma are rising transportation (freight) costs, increased wages (for workers you can’t find or don’t stay), and the delays you all see in receiving the products you need to run your businesses (supply chain).

It’s hard to be optimistic. This situation will improve. Our hope and prayer is that it happens soon.