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News Corona crisis

US dairy farmers are forced to flush milk away

2 April 2020 - Jorine Cosse - 3 comments

The coronavirus outbreak is also starting to take its toll in the United States. Not only daily life in the densely populated cities will be dealt a blow, the dairy sector will also be seriously undermined. In the state of Wisconsin, large dairy farmers are being asked to drain tens of thousands of gallons of fresh milk.

Wisconsin is the second largest dairy producer in the United States. The dairy sector in the state is currently being hit hard by the coronavirus outbreak.

Typically, one-third of Wisconsin's dairy production is used in the food sector. Due to the corona virus, this sector is at a standstill, as a result of which a large part of the production no longer has a market. Reason for milk processor Dairy Farmers of America (DFA) to have some of the largest dairy farmers forced to wash away tens of thousands of liters of fresh milk.

Wash away almost 100.000 liters
One of the affected dairy farmers tells his story to the Milwaukee Journal Sentinel. He indicates that 1 phone call caused him to wash away 25.000 gallons a day, which is the equivalent of over 94.000 liters, because there is no copper for the milk. The family now milks 2400 cows, making them one of the largest dairy farmers in the state.

For now, the cooperative to which the family belongs, Dairy Farmers of America, has indicated that it will simply pay the affected dairy farmers for the washed away milk. Unfortunately, this cooperative, like many other American dairy cooperatives, is in financial trouble, making it questionable how long they can keep up with the payments.

Hard times
The dairy sector in the United States has been struggling for years. A change in the law in 1970 repealed laws that curbed mass production, giving agribusiness the upper hand. As a result, small (family) businesses were forced to strive for optimal production, which turned out to be an impossible task for most.

Because more and more was produced, prices came under pressure. This is still the case. Prices seemed to be heading in the right direction at the end of 2019, but now that the corona crisis has gripped the world, nothing is certain anymore.

Fewer companies, more milk
Over the years, many dairy farmers have stopped because they simply couldn't keep up. In 2003, the US still had more than 70.000 companies, in 2019, 15 years later, there are only slightly more than 34.000. In 2019 alone 3.281 dairy farmers stopped, of which 800 in the state Wisconsin.

In spite of it remains the number of cows en milk production to rise. According to some American dairy farmers, this is due to the fact that they have to produce more and more in order to generate enough income.

Incidentally, the US government recently indicated that to pull the wallet for the agricultural sector. This now appears to be urgently needed.

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Jorine Cosse

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets. Jorine analyzes the roughage market on a weekly basis and periodically the compound feed market.
Comments
3 comments
Gijs 4 April 2020
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/melk/ artikel/10886514/melkveehouders-vs-spoel-melk-gegeven-weg]US dairy farmers are forced to flush milk away[/url]
Capitalism: a lot of supply and a bad price. Not like the oil price; goblins who can't control themselves. The funny thing is; the low price does not matter for consumers, but the waste and ammonia emissions do. They will not accept this. Justifiably.
shoemakers1 5 April 2020
Gijs does not know what he is talking about, such reactions are not even posted on nu.nl yet, if they are positive for the farmers, the negative should also be banned here
Peter 6 April 2020
A matter of supply and demand in Corona time, that's how it works in capitalism. We also adhere to this system. It's a waste of milk and the ammonia and CO2 produced.
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