Demand for dairy products is up significantly compared to last year’s depressed market.
But prices for dairy products likely will remain volatile in coming months due in part to a shift in buying patterns, according to Rick Kment, Telvent DTN dairy analyst.
“With the volatility in the market (milk prices went from a high of about $22 per hundredweight in 2008 to a low of just $9 per hundredweight last year) we’ve seen a significant change in the buying patterns,” Kment told FarmWeek during June Dairy Month. “Rather than buy now and hold inventory, many (wholesalers and retailers) are going to hand-to-mouth levels.”
Wholesalers and retailers in the past typically bought dairy products at a steady pace throughout the year to build inventory for busy sales seasons in the summer and near the end of each year around the holidays.
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