# High costs expected to stress dairy margins | Capital Press

> USDA forecasts 2022 Class III milk prices averaging $24.05 per cwt, but rising feed, fuel, fertilizer and labor costs are squeezing dairy margins. Rabobank and BMO Harris Bank say milk revenue currently covers costs but that margins could compress.

- Date: 2022-04-18 · published 2022-04-18T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/42001-high-costs-expected-to-stress-dairy-margins-capital-press
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Rising input costs and tighter margins may limit dairy herd expansion over time, which would moderate future dairy feed demand. Cost pressure is a medium-term consideration rather than an immediate price driver.

## Read by commodity

- MILK: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2023-01-25 | [Strong dairy product exports impact U.S. milk prices – AgriNews](https://feedsoft.ai/events/37782-strong-dairy-product-exports-impact-u-s-milk-prices-agrinews.md) | +0.3% | -8.0% |
| MILK | 2026-04-09 | [U.S. dairy market structure shifts to short on protein, long on butterfat, by: Corey Geiger - Dairy Producer](https://feedsoft.ai/events/19717-u-s-dairy-market-structure-shifts-to-short-on-protein-long-on-butterfat-by.md) | -1.4% | -0.4% |
| MILK | 2023-12-06 | [Doud, Economists Explore Dairy’s Future - NMPF](https://feedsoft.ai/events/32871-doud-economists-explore-dairy-s-future-nmpf.md) | -0.9% | -6.5% |
| MILK | 2023-01-05 | [Dairy outlook 2023: stand by for volatility to continue \| BusinessDesk](https://feedsoft.ai/events/5547-dairy-outlook-2023-stand-by-for-volatility-to-continue-businessdesk.md) | -4.4% | -12.5% |
| MILK | 2019-03-11 | [Dairy’s journey through 2019 will be complex, and cheese is the driver - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/60251-dairy-s-journey-through-2019-will-be-complex-and-cheese-is-the-driver.md) | -0.2% | +5.9% |

## Sources

- capitalpress.com: https://capitalpress.com/2022/04/18/high-costs-expected-to-stress-dairy-margins/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.