# Production cutbacks likely for dairy - Brownfield Ag News

> Wells Fargo economist Michael Swanson said US domestic dairy demand cannot absorb recent production growth of nearly 2%, so strong exports are needed. He argued that if exports hold at record 2020 levels, the surplus can be absorbed, but otherwise prices face downward pressure and herd cuts are likely.

- Date: 2021-02-18 · published 2021-02-18T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/48804-production-cutbacks-likely-for-dairy-brownfield-ag-news
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Expected herd reductions in mid-2021 and reliance on export demand point to softer milk prices and a potential drop in dairy feed demand.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2020-04-08 | [Vilsack: Dairy exports improved before coronavirus - Brownfield Ag News](https://feedsoft.ai/events/5744-vilsack-dairy-exports-improved-before-coronavirus-brownfield-ag-news.md) | -2.5% | -18.1% |
| MILK | 2021-07-07 | [What does inflation mean for milk prices? - Dairy Producer](https://feedsoft.ai/events/46216-what-does-inflation-mean-for-milk-prices-dairy-producer.md) | +0.7% | -1.8% |
| MILK | 2022-07-07 | [What Do Recent Falling Feed Prices Mean For Dairy Producers? - EDairy News English](https://feedsoft.ai/events/8551-what-do-recent-falling-feed-prices-mean-for-dairy-producers-edairy-news-english.md) | +1.5% | -10.0% |
| MILK | 2026-04-27 | [Market, pricing changes force dairy producers to adapt \| Agriculture \| nwestiowa.com](https://feedsoft.ai/events/19878-market-pricing-changes-force-dairy-producers-to-adapt-agriculture-nwestiowa-com.md) | +1.4% | +0.5% |
| MILK | 2022-07-12 | [Lee Mielke: Dairy product demand weakening \| Capital Press](https://feedsoft.ai/events/40633-lee-mielke-dairy-product-demand-weakening-capital-press.md) | -0.8% | -12.3% |

## Sources

- brownfieldagnews.com: https://brownfieldagnews.com/news/production-cutbacks-likely-for-dairy/

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