Perry: Dairy Expected To Return To Profitability
As we reach the halfway point of our week-long series on Northwest Farm Credit Services Commodity Snapshot, we look at livestock. When it comes to the beef industry, Bill Perry EVP at Northwest Farm Credit Services says their 12-month outlook suggests moderate level of profitability.
“Packer margins are high, which is supporting a very profitable year in the processing segment. Cattle feeders currently face negative margins, though the average margin for 2019 is expected to remain slightly above break even. Calf prices have declined throughout the 3rd quarter, and face uncertainty going into the fall, which may limit profitability for cow/calf producers.”
When transitioning to dairy, Perry said NWFCS anticipates a welcomed return to profitability in 2019 and into 2020.
“Futures Markets suggest Class III and Class IV milk prices will increase in the 4th quarter, providing opportunities for profitable operations. Additional attention to feed cost management will benefit dairy producers, and further bolster profitability.”
Our look at the local Commodity Snapshot continues Monday as we transition to Hay and Wheat.
If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com
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