California Dairy Holiday Demand Up and CoBank on Ag Economy
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
** Demand for California dairy is rising as usual for the holiday season, despite inflation pushing up the cost of many dairy products.
While inflation hit a 40-year high of 8.5% in 2022, dairy products saw far larger price increases, as did butter, which rose more than 26% year-on-year in October.
Despite higher prices, the movement of dairy products has increased in recent months, according to the Dairy Institute of California.
**The US economy still has considerable momentum and is not currently on the brink of recession, according to CoBank’s 2023 year-ahead report.
But economists have never been so pessimistic, and there is good reason to be concerned.
Over the past half-century, inflation above 5% has never been tamed without a recession.
CoBank Vice President Dan Kowalski says, “As financial conditions continue to tighten, we expect the US economy to weaken steadily through the first half of 2023.”
**USDA’s National Institute of Food and Agriculture announced a nearly $10 million investment through the Community Food Projects Competitive Grants Program.
Funding made possible by the American Rescue Plan
Act, strengthens USDA food and nutrition security efforts.
Community food projects support small to medium-sized farmers, producers and processors in urban, rural, tribal and island areas.
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