The USDA's most recent WASDE report projects the price of skim milk to be on the rise till at least the end of 2017.
Martha Roberts, Economic Research Specialist for Farm Credit Canada, says that's good for Canadian dairy farmers.
She notes both sides of our border have an excess of the product, leading to milk prices hovering around global price levels.
World price levels can only increase if demand around the globe goes up.
Roberts points out that's exactly the case in China -- who Canada just boosted trade relations with -- where the use of dairy has grown by double digits.
She concludes it will take a while for global supply and demand to reflect in dairy pricing. Once it does, Canadian dairy farmers should see an improvement in prices.
