Galliker’s Dairy Co. will stop purchasing milk from 11 dairy farms because of an oversupply of milk.
The Johnstown, Pennsylvania-based milk processor told WJAC-TV the company has been dealing with a surplus of milk for years.
It was a difficult, but necessary finical decision according to Evan Fineman, Galliker’s senior vice president.
Galliker’s buys milk from 85 dairies, including the farms that will be looking for a new place to market their milk. Fineman says the company has seen milk production increase 10% while sales have declined.
The change will take 2 million out of the processor’s plant, about 13% of the 14.5 million gallons Galliker’s annually produces.
"The surplus nationally and especially in the mid-Atlantic and Northeast areas has been so large that many of the co-ops now have laid off many farmers and we held tight as long as we could," Fineman says.
The decision took eight to nine months before it was finalized in hopes fluid milk sales would turnaround.
A 30 day notice was given to the 11 impacted producers on Monday, June 12.