Increase in Milk Prices in 2014, But Expect a Drop in 2015, Part 1
Thursday, January 22nd, 2015 -- 2:23 PM
-In 2014, farmers saw record setting milk prices, but experts say farmers should get ready for a swift decline in 2015.Ken Heiman, of Nasonville Dairy in Marshfield, explained the increase of 2014.
Ken said, "The biggest thing about the prices climbing last year had a lot to do with the amount of exports. We were in excess of 13% of all of our milk solids leaving the country. So when you take that much out of what is being sold, you do create your own shortages."
"The other thing we did, a lot of things that have happened, especially in Wisconsin, is that we've created a lot of new uses for cheese, where it's being used. A lot of new uses for whey proteins and milk proteins. All of the things that are milk derivatives and how they're being used and utilized in this country, as well as in other countries. But, new products are always coming out so you can see a resurgence of that, so that's why our prices got that high."
"Something that makes me nervous is the fact that all the way from $2.13 to $2.40 that the cheese got up to, there was no sales. It was all on bids. So that makes me a little bit nervous about why that should have happened or should have been some sales along the line and there wasn't. People say because it was short, don't know that, but that's as much as I do know as to why it went that high. Because the demand was there."
Due to over saturation and poor world markets, experts are expecting a swift decline in 2015 prices.
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