Some Producers Say Exports Are The Answer, Others Call For Managing Supply. Dairy prices typically rise and fall on a three-year cycle driven by supply and demand. So when 2014 brought record-high milk prices, no one was surprised that the market crashed a year later.But the industry has been caught off guard by the lack of improvement in prices since then.“There’s just a lot of dairy product on the marketplace and I don’t see farmers cutting back very quickly, unless prices really go south and I don’t expect that to happen,” said Mark Stephenson, director of dairy policy analysis for the University of Wisconsin-Madison. “So I just think that there’s more like this longer, slow bleed this time.”
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