As confirmed coronavirus cases and fatalities mount—mostly but not solely within mainland China—dairy prices eased in the most recent Global Dairy Trade auction falling by nearly 5 percent. Travel restrictions and reduced growth forecasts as a result of the virus are curbing future demand estimates.
Many businesses across China have been closed for Lunar New Year and may remain closed longer as the government of China struggles to contain the outbreak.
Meanwhile, the USDA Dairy Products report showed that production is seasonally rising across the U.S.
During December 2019, total cheese production rose 1.3 percent above November, while butter production (177 million pounds) was up 13.9 percent.
Clearly, the U.S. dairy industry is poised for expansion in 2020, and production is now growing as we approach 2020 flush. Will global demand cooperate?