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Farmers dumping milk due to supply chain roadblocks caused by coronavirus

April 3, 2020

Despite strong demand for basic foods such as dairy products during the coronavirus pandemic, the milk supply chain is experiencing disruptions that are preventing dairy farmers from getting products to market and causing some to dump milk, according to a Reuters report.

Extensive closures of restaurants and schools have caused a shift from the wholesale foodservice markets to retail grocery stores, creating logistical and packaging problems for plants processing milk, butter and cheese. Trucking companies that haul dairy products are struggling to get enough drivers as many have stopped working. Sales to dairy export markets have disappeared as the global foodservice sector has largely shut down.

The dairy business got hit harder and earlier than other agricultural commodities as the products are more perishable than those that can be frozen, such as meat, or kept in a silo, such as grain.

For updates on the impact of the coronavirus pandemic on the convenience services industry, click here.