Input Costs, Export Slowdowns Remain Big Challenges For Idaho Dairy, Naerebout Says

For the Idaho dairy industry, the challenges are both coming and going. Rick Naerebout, CEO of the Idaho Dairymen’s Association said like many in the farming community, input costs are really cutting into the bottom lines of producers across the state. But rather than products from overseas, he noted the biggest challenge right now for diary producers is feed costs.

“The west has been in a sustained drought to varying degrees depending upon states and regions, but there’s just exceptional competition to buy hay across the west.  We’re all praying for a hard winter, but as you look at the prospects of a hard winter and a lot of snowfall, then we’re going to put more pressure on an already depleted hay stock as we move through the winter months.”

Naerebout noted, while no one is looking forward to the prospects of higher feed costs, he acknowledges that an intense winter is needed to replenish water supplies statewide.

The other issue before dairy producers arises when it comes sending products out. Naerebout noted Idaho is a big dairy exporter, both domestically and internationally, of whey other protein products, and even cheese. So the impact of the port bottleneck has been felt across the state.

“[We’re] very dependent on a healthy export market and moving products out of port, and so that congestion has impacted our dairymen as well here.  We’re hopeful that situation can get better, but it’s feeling like that one’s probably to get a little bit worse before it gets better.”

Naerebout noted on the positive side, global milk production is decreasing which means the likelihood of higher prices moving forward.

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