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Lack of demand in dairy industry in the US

on: April 17 ,2020 In: Developing News

Demand for milk has decreased in the US due to the closure of schools and businesses. Since the cows keep producing milk seven days a week, this has meant that many dairy farms have to dump the milk.

Although the long-term impact of the disruption caused to the industry due to the coronavirus pandemic is unclear, milk prices usually go down when there is too much milk on the market, as prices are based on supply and demand.

However, there had been alternative opportunities at the start of the pandemic when the bigger box stores were struggling to keep up with demand.

This disruption comes after the dairy industry has been having tough times for the last 3 to 5 years.

The amount of liquid milk consumed per capita in the US has decreased by more than 40% since 1975. Americans are opting to buy juice, soda and milk substitutes made from soy or almonds instead, while at the same time, protein bars, yogurts and other on-the-go breakfasts have replaced a morning bowl of cereal. Although Americans consumed around 24 gallons a year in 1996, it had dropped to 17 gallons in 2018.

Sources: WSLS 10 – 17th April 2020; The Guardian – 06th January 2020

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