McCully Consulting
Resources
Where will the milk come from? CMN Jan 2024
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Organic Dairy Market Report – Q2 2023
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Billions in Plant Investments Across the Country Support Milk Growth
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Has the time come for federal order reform 2.0?
The dairy market disruptions from COVID-19 through 2020 and into 2021 exposed flaws in the foundation of U.S. dairy policy and milk pricing. Numerous discussions have been had over negative producer price differentials (PPDs), depooling, the Class I formula, and other...
Energy revenue could be a game changer for dairy farms
One in 10 U.S. dairy cows could be fueling renewable energy projects. This includes both electricity and co-generation. In May, the U.S. dairy herd expanded to its highest level in 27 years, climbing to over 9.5 million head. This contrasts with a rather tight window...
Value v.s. Volume: Time to Innovate
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Is It Time to Simplify Milk Pricing?
Tossing out federal orders is not necessary, but a system that balances the needs of both the fluid and export markets must be considered for the future. The unprecedented volatility in dairy markets over the last several months has raised questions about how milk is...
The McCully Report
The McCully Report is a monthly dairy market newsletter with price forecasts for all major US dairy commodities and classes of milk. The report summarizes US and global market drivers into concise impacts on dairy prices. Mike McCully, a leading dairy industry expert...
Is It Time for Supply Management?
As in every downturn in milk prices over the last century in the US, groups of dairy farmers, primarily small farm advocates, are talking about some type of supply management system in an effort to increase milk prices. The concept is simple – produce enough milk to...
Dairy Farm Numbers Could Fall 50 Percent by 2030
While the headline sounds apocalyptic, it merely is a continuation of the long-term trend of fewer and larger farms. In 2003, there were just over 70,000 licensed dairy farms in the country. In 2018, that number will fall below 40,000 for the first time representing a...
Block Barrel Spread – 2018
Over the last two years, there has been a lot of talk about the historically wide spread between Chicago Mercantile Exchange (CME) block and barrel cheese prices. Various reasons have been offered up, but the causes are rooted in several supply and demand factors....
What’s Next for US Dairy Plant Capacity
Over the last few years, milk processing capacity, or the lack of it, has been frequently discussed. U.S. milk production continues to grow, the equivalent of more than 7.5 million pounds per day each year. The United States has added a significant amount of milk...
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