AgDay Dairy Analysis: Every Bit of Demand Helps During COVID-19

Dairy Markets 090320

Analysts say every bit helps when it comes to dairy demand during COVID-19. One expert says USDA’s programs help, too.  

Back in August, USDA announced plans to purchase mozzarella, processed and natural American cheddar cheese for the National School Lunch Program and other Federal food nutrition assistance programs. USDA also has dairy included in its Farmers to Families Food Box Program. As of September 4, 81.9 million food boxes have been received. 

“Thankfully, the USDA came in,” says Naomi Blohm, a senior market advisor with Total Farm Marketing.  “We have more demand for cheese. That should push prices higher for the short-term.  

However, Blohm says it’s going to “be a balance” to really understand where the true production is for milk and where demand is, if it wasn’t for the programs.