Milk Price Outlook

Gary Schnitkey 
Dairy Farm Management Specialist 

  • The February 1998 Basic Formula Price (BFP) is $13.32 per cwt., up $.07 from the January 1998 BFP. This BFP will place average pay prices for Ohio milk producers in the $14 to $15 per cwt. range BFPs for the last three months have been above $13.00 per cwt., well above the average $11.90 BFP for the last ten years.
  • The March BFP will likely fall, possibly more than $.50 per cwt. Indicators of a price decline include March futures contracts trading in the mid $12 range. In addition, cheese prices in late February began to decline.
  • After March, the BFP likely will continue to fall through the summer. Expect the BFP during summer to be around $12.00 per cwt.