October 2024 Mix Pricing Update
Starting in October, dairy mix prices will increase due to rising costs in key ingredients, including butterfat, non-fat dry milk (NFDM), eggs, and milk. Several factors are driving these changes, and we want to keep you informed of the latest movements in the dairy markets.
With tight milk supplies and now school back in session, nonfat milk is hitting new highs. At $22.05 per hundredweight (cwt), the August Class II milk price is up 23 cents from July and $2.14 higher than August 2023, marking its highest point since December 2022. This jump in milk prices, along with a year-over-year decline in milk production, has pushed up the costs of both milk and NFDM. Additionally, butterfat prices are seeing a seasonal increase due to heightened demand ahead of the holiday baking season.
Luckily, butterfat hit some resistance at $3.20 in the last week. It’s hard to tell if it will make another run before October/November, but we are keeping an eye on it.
Eggs continue to face rising costs as bird flu outbreaks disrupt supply chains.
While we had hoped for price stabilization, these market conditions have driven costs higher than anticipated. We remain committed to keeping you updated with any changes that may occur.
We sincerely appreciate your continued trust in Meadowvale as your mix supplier and are dedicated to providing you with top-quality products during these challenging times.
