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Dairy Industry Faces Losses as a Result of COVID-19


A prominent dairy industry analyst noted that dairy product sales in grocery stores soared during mid-March concurrently with eggs attributed to panic buying stimulated by fear of COVID-19.  Sales of fluid milk were up 32 percent, cheese 45 percent and yogurt up 29 percent compared to the corresponding week in 2019. 


Sales of milk to schools representing 9 percent of all fluid milk volume have declined sharply with closures in many metropolitan areas. This factor together with decreased sales to restaurants and into food service will depress sales of all dairy products.  The National Milk Producers Federation estimates direct losses as a result of COVID-19 could attain $3 billion necessitating Federal support.  The NMPF has requested additional dairy product purchases by the USDA for food banks and is encouraging re-enrollment of farmers in the Dairy Margin Coverage Program.


Contrast the support programs extended to milk producers and to the absence of market stabilization for eggs. Our industry just has to battle through oversupply situations