With milk prices plunging to lows that haven’t been seen in nearly four years, dairy cooperatives are dumping the product to reduce oversupply, Bloomberg News reported. 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 coronavirus is killing off a significant tap for demand. While some dumping usually occurs during the U.S. spring, 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. Wisconsin dairy farmer Wayne Gajewski hasn’t yet resorted to dumping milk, but 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,” said Gajewski. While demand for dairy products initially surged due to consumers stocking up on staples, that has now dropped, said Kristen Coady, a spokeswoman for Dairy Farmers of America. The cooperative is trying “all possible avenues to find a home” for their members’ milk, including donation opportunities at food banks.
