The concordance of "spring flush" and a decline in demand has resulted in a severe over- supply of fluid milk in the U.S.
Dairy Farmers of America noted a transitory increase in retail demand during March attributed to panic buying by consumers in response to COVID-19. This surge in demand has now abated, paralleling the situation in the shell egg industry.
The milk industry has also been seriously impacted by the closing of schools and universities coupled with a sharp decline in demand for dairy products by the food service sector.
The dairy industry expects that farmers will be reimbursed for milk dumped as the Class IV category. This is a benefit afforded to dairy farmers, but not to egg producers who have to bear all losses loss when price declines below production cost as occurred for eight consecutive months in 2019.
