Dairy economist forecasts 23% price drop due to COVID-19

 

By Mark Dorenkamp, Brownfield 

March 18, 2020

 

A dairy economist forecasts a more than 20 percent price drop because of COVID-19.

 

Nate Donnay with INTL-FCStone says he’s basing that off expenditures at grocery stores versus food service.

 

“And if we’re looking at something like a 40 percent decline in sales at restaurants for a three-month period, I think that would knock about three and-a-half percent off of total dairy demand in calendar 2020.”

 

He tells Brownfield that calculates to about a 23 percent reduction in dairy prices.

 

“So, we’re talking about farm-gate milk prices maybe being around $18-per hundredweight without coronavirus. Now with coronavirus, we’re talking about farm-gate prices down around $14 cwt.”

 

Because of the revised price outlook, Donnay expects…

 

more, including audio [8:06 min.]

https://brownfieldagnews.com/news/dairy-economist-forecasts-23-price-drop-due-to-covid-19/