Dairy companies dependent on a specific market that may have closed due to COVID-19 restrictions or companies that simply don’t have enough processing capacity are coming under pressure in the US, the UK and France. Many US local papers are reporting that some Wisconsin farmers are being asked to dump milk because plants are operating at capacity and they are simply not able to take in all the milk available.
Dairy companies dependent on a specific market that may have closed due to COVID-19 restrictions or companies that simply don’t have enough processing capacity are coming under pressure in the US, the UK and France.
Many US local papers are reporting that some Wisconsin farmers are being asked to dump milk because plants are operating at capacity and they are simply not able to take in all the milk available.
Reportedly, some large-scale farms are being asked to dump milk from 1 April until 6 April.
Rumours
In recent weeks, rumours began circulating on farms across Wisconsin and beyond that milk processing plants or co-operatives would require farmers to dump milk due to decreased demand from the shutdown of schools and restaurants, as well as softening demand in the food service and export markets.
This week, the US’s largest co-operative Dairy Farmers of America (DFA) has asked some large dairy farms to dump milk. Farmers are being compensated for their dumped product.
It has lost more than two dairy farmers per day as many farms are not financially viable
Wisconsin has about 1.3 million dairy cows (similar to Ireland) and 8,000 dairy farmers. However, for the last year it has lost more than two dairy farmers per day as many farms are not financially viable.
Corn residue being broken down in Wisconsin.
In the UK, there are reports that some small processors that were dependent on specific markets have also gotten into trouble. One report suggests that one processor is only paying 25% of the milk price to farmers for March and April.
In France, we are hearing reports that some companies are seeking to flatten milk supply for the spring production period by paying farmers not to deliver a certain proportion of their milk in April.
The suggestion is that a farmer would reduce monthly supply by a percentage – let’s say 5% or 10% - and then he would be compensated for that drop by being paid a fixed price.
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