# The State of Dairy 2021: Southeast: More than a fluid situation | Ag Proud

> Southeast US dairy producers enter 2021 pessimistic, according to Southeast Milk Inc. The cooperative blames high market balancing costs and the Class I pricing mechanism introduced in 2019. Analysts expect lower milk prices alongside climbing energy and feed costs, which will squeeze producer margins.

- Date: 2021-03-13 · published 2021-03-13T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/48278-the-state-of-dairy-2021-southeast-more-than-a-fluid-situation-ag-proud
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Expected lower regional milk prices combined with higher feed costs may push some Southeast farms out of production, reducing regional demand for feed.

## Read by commodity

- MILK: bearish ▼

## Sources

- agproud.com: https://www.agproud.com/articles/35896-the-state-of-dairy-2021-southeast-more-than-a-fluid-situation

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