Farm lender and Vita Plus Business Development Manager Gary Sipiorski tells Brownfield since 1983 when milk supports were eliminated, the dairy industry has averaged a three year price cycle of highs and lows.  “That’s when we started to see a vicious cycle as far as the rollercoaster ride with milk prices.”

He says some economists believe that cycle is starting to lengthen to a four or five year cycle with increased global production and softening demand.  “Right now you do have a worldwide situation.”  He says, “We can see what’s going on with oil prices—a lot of places around the world that rely on the oil revenue to buy dairy products from us, particularly in the Middle East and in Africa, they don’t have the income that they had before.  China has the same thing.”  Sipiorski says some worldwide major catastrophe could change things.

He tells Brownfield many U.S. dairy farmers are well positioned after 2014’s high prices which may help them survive longer-term.