Co-ops start reacting to milk surplus

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A New York-based dairy cooperative is cutting the price paid to members, citing a surge in the milk supply since the beginning of the year.

“This is something we have done on rare occasions and only do if it is absolutely needed,” according to a memo from top brass at Dairylea Cooperative to members.

Dairylea spokeswoman, Jennifer Huson, quoted by the Albany Times Union, said it was the first time in more than five years that the cooperative has cut its price.

The cut is between 10 cents and 20 cents per hundredweight, according to this article in the Times Union.

This comes on the heels of the Land O’Lakes co-op in California shuttering 17 dairies in a buyout program. Read more.

Here is part of a March 16 letter from Pete Garbani, Land O’Lakes director of milk supply western region, to suppliers:

“We have received or sold over 17 million pounds per day in early March and volumes are still growing. As such, we continue to seek alternative markets for your milk. Our efforts thus far have resulted in deep discounts to clear the market and as production continues to grow, these alternatives will become increasingly less attractive.”



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