Milk processing in the US gasps

Never before has the milk supply been as large as it is now. In May, during the seasonal peak, supply reached record production, which was barely 1% higher than last year. In June, the supply at 8,21 million tons was only 0,2% ahead of last year. This means that production is showing declining growth. This is probably due to the lower milk prices that American dairy farmers are also confronted with. Milk processors are probably happy with this development, as the supply sometimes overwhelms them.

Bloomberg recently reported, based on an agricultural trade media in Wisconsin, that the milk supply is so large that processing cannot cope. This leads to dumping on various dairy farms. This is also reported in Minnesota, also a large dairy state. Although milk dumping is not a national problem, the supply is experienced as ample throughout the US. The market will probably relax somewhat in the coming months, when milk supplies will decrease seasonally. 

Moderate demand, despite lower prices
In contrast to ample supply, there is moderate demand. This is due to the sharp increase in dairy prices in American supermarkets. In the meantime, the downward trend has started again. According to data from the US Department of Agriculture, the price of drinking milk has fallen from $2,30 to $1,78 per gallon (3,79 liters) in a year. However, demand is difficult to come by, partly because schools are closed at this time of year and a lot of milk is consumed there.