• February FMMO milk class prices back to 2021 levels
• Global dairy product prices declined in February
• Dairy margins ended February modestly higher
• RaboResearch: The dairy squeeze is on

Communications agency C.O.nxt provides public relations and marketing services for a wide range of companies and organizations, reaching from dairy producers to consumers. As such, they have a bird's-eye view of the “state of dairy” throughout the supply chain.

In addition to state and regional dairy producers, organization leaders, processors and others, Progressive Dairy reached out to industry representatives with a broader view of the state of dairy entering 2023. Here are summaries of their comments.

Expanding on Progressive Dairy’s annual “State of Dairy” outlook for the northeast U.S., Zach Myers, risk education manager, and Jayne Sebright, executive director, provide insights on current conditions and future challenges and opportunities as 2023 gets underway.

One of the key factors affecting the state of dairy in 2023 is domestic demand and the role inflation has on retail sales. The industry will need to focus on innovative products that balance premium experiences, health claims, taste and convenience to meet consumer demand and capture future growth.

Intermingled with large population centers, dairy producers, processors and marketers in the Northeast and New England must stay in tune with local demands and global conditions. That results in a medley of opportunities and concerns.

Geographically, the Central Federal Milk Marketing Order (FMMO) stretches across Oklahoma and Kansas, large portions of Colorado, Illinois, Iowa, Missouri and Nebraska, and into counties in Minnesota, South Dakota and Wisconsin.

Milk producers and handlers supplying the Appalachian Federal Milk Marketing Order (FMMO) cover five states: Kentucky, North Carolina, South Carolina, Tennessee and Virginia. Like their neighbors to the south, they share similar concerns and diverse outlooks.