# January 6, 2023: Tighter Margins Expected in 2023 | Center for Dairy Excellence

> Class III and Class IV milk prices continued downward trends that began in 2022 at the start of 2023. Analysts expect a larger, more efficient herd, stronger international supply and high input costs to pressure margins in 2023 compared with 2022.

- Date: 2023-01-06 · published 2023-01-06T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/5543-january-6-2023-tighter-margins-expected-in-2023-center-for-dairy-excellence
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Lower milk prices with high input costs squeeze dairy producer margins and reduce demand for dairy-related feed ingredients. The outlook points to continued softness in milk prices.

## Read by commodity

- MILK: bearish ▼

## Sources

- centerfordairyexcellence.org: https://www.centerfordairyexcellence.org/markets-management/markets-management-column/january-6-2023-tighter-margins-expected-in-2023/

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