topic Re: Farmers Dumping Milk --Virus Reducing Demand in Community Chat

Farmers Dumping Milk --Virus Reducing Demand

novamc1 — Sat, 04 Apr 2020 11:24:44 GMT

From Bloomberg News.......

With milk prices plunging to lows that haven’t been seen in nearly four years, dairy cooperatives are dumping the product to curb an oversupply.

While shoppers are clearing out milk cases at grocery stores, that’s not making up for the closings of restaurants and schools.

U.S. cows are entering their most productive time of the year right now as the coronavirus is killing off a significant source of demand.

Some dumping usually occurs during the U.S. spring, but this year it will be “even more aggressive,” said Alyssa Badger, director of operations at HighGround Dairy in Chicago.

“There’s no way to offset how much loss we’re seeing with school closings and food-service demand in the form of cheese and butter, just because someone’s buying an extra gallon of milk,” Badger said.

American dairy farmers have been suffering a wave of bankruptcies amid years of low milk prices, and with so many exiting -- Wisconsin alone was losing two to three dairy farms a day for the past three years -- the industry was just starting a recovery. The onset of the virus has put any such turnaround on hold.

Benchmark Class III milk futures, a type that’s used in cheese-making, dropped below $13 per 100 pounds this week in Chicago, a low not seen since May 2016. Butter prices are crashing, with futures touching the weakest since 2012 amid swelling stockpiles. Cheese is at the lowest in a year.

While Wisconsin dairy farmer Wayne Gajewski hasn’t yet resorted to dumping milk, supplies are backing up in local markets and prices have fallen below his cost of production. He’s hoping the federal government can buy some dairy products to distribute to those in need, and that the virus clears up soon.

“We’re not used to the supply chain breaking down,” Gajewski, who has about 80 dairy cows, said by phone. “That’s my biggest concern.”

Re: Farmers Dumping Milk --Virus Reducing Demand

Peaches McPhee — Sat, 04 Apr 2020 11:50:27 GMT

Not to diminish the negative impact health wise and socially, I think the negative economical impact is just starting.

Re: Farmers Dumping Milk --Virus Reducing Demand

ValuSkr — Sat, 04 Apr 2020 12:49:20 GMT

And yet cheese and butter prices at the supermarket still seem high. I'd buy cheese if it were less expensive. Oh well, it's probably just as well - it's not the healthiest of foods.

Re: Farmers Dumping Milk --Virus Reducing Demand

MalteseMomma — Sat, 04 Apr 2020 14:34:19 GMT

I saw that on the news and I cringed thinking, of all the kids that need milk and don't have any

Why would the virus reduce the demand on milk?

Why,oh why, didn't they donate it somewhere !!!

Re: Farmers Dumping Milk --Virus Reducing Demand

depglass — Sat, 04 Apr 2020 14:42:24 GMT

Can't they donate this to one of those foodbanks like Feeding America? Perhaps lack of refrigeration precudes this.

Re: Farmers Dumping Milk --Virus Reducing Demand

Sooner — Sat, 04 Apr 2020 14:45:31 GMT

I think we will have a year or two of very different food supplies. I think we will not have the cheap fresh produce this year, and I think most of us will be eating a few more processed foods in the coming year.

Say what you want but processing is a way to store food for future use, and make it less expensive for consumers. You take a crop that can't be easily transported, process it, and it becomes available and available for an extended time.

I don't think the money or the labor will be available this year and probably into next to grow and harvest food for fresh transport and sale in the volumes we have in recent years. I also think cattle herds will be thinned and beef go up in price.

Re: Farmers Dumping Milk --Virus Reducing Demand

sunshine45 — Sat, 04 Apr 2020 14:52:01 GMT

the dairy farms in our area go beyond milk......they make butter, cheeses, ice cream, and more. some are now adding delivery services.

several have opened FRESH ice cream stands to serve customers. in years past they have been so busy on weekends.

its a nice little day trip for a family......see the farm animals, get some ice cream.

Re: Farmers Dumping Milk --Virus Reducing Demand

Anonymous032819 — Sat, 04 Apr 2020 14:59:46 GMT

How long before someone comes along and squawks "Milk is evil! Milk is evil!!!" ?

Re: Farmers Dumping Milk --Virus Reducing Demand

BExplorer — Sat, 04 Apr 2020 16:32:19 GMT

@Anonymous032819 wrote:
How long before someone comes along and squawks "Milk is evil! Milk is evil!!!"

Since you asked....I will! 😬

Re: Farmers Dumping Milk --Virus Reducing Demand

wildcat fan — Sat, 04 Apr 2020 16:47:01 GMT

We usually go through 2 or 3 gallons of milk each week, but have scaled back recently because it's so difficult to find at the store.

Re: Farmers Dumping Milk --Virus Reducing Demand

sunshine45 — Sat, 04 Apr 2020 16:56:01 GMT

@wildcat fan wrote:
We usually go through 2 or 3 gallons of milk each week, but have scaled back recently because it's so difficult to find at the store.

we go through a lot of milk also and now that one daughter is home from college and one son is out of work, we have been using even more. PLUS i make my own yogurt every week. i have been buying milk/half n half/cream from the grocery store and from places like 7 -11 and sams club. i buy whole milk and usually a nut based milk.

Re: Farmers Dumping Milk --Virus Reducing Demand

MalteseMomma — Sat, 04 Apr 2020 19:39:10 GMT

@Sooner

My cupboards are full of processed food.........

Re: Farmers Dumping Milk --Virus Reducing Demand

GrailSeeker — Sat, 04 Apr 2020 19:56:12 GMT

I heard that milk demand had been down for a few years last summer, when Dean Foods declared bankruptcy. I thought it was said that Dean was the biggest milk supplier in the country. I do not think that the virus is what caused a reduction in demand.

Re: Farmers Dumping Milk --Virus Reducing Demand

suzyQ3 — Sat, 04 Apr 2020 21:03:32 GMT

@MalteseMomma wrote:
I saw that on the news and I cringed thinking, of all the kids that need milk and don't have any

Why would the virus reduce the demand on milk?

Why,oh why, didn't they donate it somewhere !!!

@MalteseMomma, from the OP's post:

With milk prices plunging to lows that haven’t been seen in nearly four years, dairy cooperatives are dumping the product to curb an oversupply.

While shoppers are clearing out milk cases at grocery stores, that’s not making up for the closings of restaurants and schools.

Re: Farmers Dumping Milk --Virus Reducing Demand

reiki604 — Sat, 04 Apr 2020 22:07:58 GMT

Why can't they do the right thing and donate it to someone like Jose Andres and his WCK who provide meals to areas that are in need due to natural disasters like this one. He has kitchens set up all over the US and around the world. The dairy farmers would probably get a charitable deduction on their taxes as well.

Re: Farmers Dumping Milk --Virus Reducing Demand

september — Sat, 04 Apr 2020 22:16:36 GMT

It's a distribution problem. We've all seen how scarce dairy products have been in our local markets.

I can't drink milk (lactose intolerant) but have had trouble finding other dairy products I can eat. Even butter!

Re: Farmers Dumping Milk --Virus Reducing Demand

happycat — Sat, 04 Apr 2020 22:24:51 GMT

@MalteseMomma wrote:
I saw that on the news and I cringed thinking, of all the kids that need milk and don't have any

Why would the virus reduce the demand on milk?

Why,oh why, didn't they donate it somewhere !!!

My thoughts exactly, @MalteseMomma.

One of the food pantries in town had a post on fb, that they were giving away food. And most of it looked like fresh fruits and vegetables, which is great, but I did notice they didn't mention anything about giving away milk. I am hoping the schools here who are delivering lunches to the school kids are giving them milk. Surely they are.

I know I am not the only one who cannot stand the thought of a child being hungry. It just breaks my heart.

Re: Farmers Dumping Milk --Virus Reducing Demand

ECBG — Sat, 04 Apr 2020 22:35:12 GMT

@depglass wrote:
Can't they donate this to one of those foodbanks like Feeding America? Perhaps lack of refrigeration precudes this.

@depglass I agree. Also who pays for the pasteurization and other necessary processing?

Re: Farmers Dumping Milk --Virus Reducing Demand

debcakes — Sun, 05 Apr 2020 03:09:27 GMT

@depglass wrote:
Can't they donate this to one of those foodbanks like Feeding America? Perhaps lack of refrigeration precudes this.

Re: Farmers Dumping Milk --Virus Reducing Demand

debcakes — Sun, 05 Apr 2020 03:12:19 GMT

@depglass wrote:
Can't they donate this to one of those foodbanks like Feeding America? Perhaps lack of refrigeration precudes this.

The milk being dumped is not pasteurized or processed in any way.