FCC predicts moderate revenue increase but little expansion for dairy in 2020

This year should be mostly a good one for dairy farmers, according to Farm Credit Canada, with a moderate increase in revenues but limited opportunity to expand.

Amidst doom and gloom news seemingly across ag sectors, that’s not too shabby.

The FCC is boiling that prediction down to a few key factors, namely:
• The Canadian Dairy Commission bumped the butter support price last month nearly two per cent. But high butterfat stocks will limit growth opportunities.
• In 2020, consumer demand is expected to remain strong, though trade deals are expected to open up more foreign access to the domestic dairy market.