2020 Salute to Dairy

2 | CELEBRATING OUR LOCAL DAIRY INDUSTRY THURSDAY, JUNE 18, 2020
Prices plunge during pandemic; but recovery may be emerging
California dairy producers
enjoyed a solid 2019
after suffering through a
four-year downturn in the
prices they were paid for
their milk and carried optimism
into 2020.
Then came the novel
coronavirus and a pandemic
which upended life in nation’s
around the world.
Shock waves from the
pandemic rolled through
the economy as a whole and
the dairy industry was not
spared as milk prices paid
to producers plunged in the
face of the crisis.
But, as unexpectedly as
the pandemic itself, milk
prices appeared to be significantly
on the way to recovery
as May gave way to
June, according to one industry
economist.
“What is fascinating is
that in the last week or so I
have seen an unprecedented
rally in the market,” Annie
AcMoody, director of economic
analysis for Western
United Dairymen, told Mattos
Newspapers in a June
5 interview. “The block
cheese prices set a new record
high price, something
that we have never seen.
We went from borderline
catastrophe to June prices
approaching record highs
in some commodities, mostly
cheese. In California, a
lot of our production goes
to cheese, so it is a big deal
for our producers.”
AcMoody said she anticipates
prices paid to producers
for June jumping to
the $18 per hundredweight
range - or about where the
prices stood back in the
pre-COVID days of February.
In the interim, she said,
prices fell to around $17 in
March, plummeted to $14 in
April and slipped further to
$13 in May.
“That is a huge jump,”
AcMoody stated, adding the
cautionary note that prices
may slip somewhat in July.
“I think $18 is kind of a
See ECONOMY | PAGE 3
Prices paid to dairy producers plunged with the emergence of the novel coronavirus pandemic, but indications of a recovery are cause for at least
cautious optimism in the industry.
WE'RE YOUR TRUSTED INSURANCE SPECIALISTS!
Rico, Pfitzer, Pires
& Associates
Your Local Full-Service
INDEPENDENT INSURANCE AGENCY
“Committed to Service, Quality and You”
Agricultural &
Commercial Insurance
Worker’s Comp
and more!
Personal Lines
Automobile • Motorcycle
Life • Health
Home • RV, Boat & More
Agricultural • Commercial • Industrial • Business
Workers Compensation • Risk Management
Loss Prevention • OSHA Compliance
GUSTINE
207 5th Street
854-2000
Se Habla Español • Fala-se Português www.rppins.com
Lic. #0499798