Dairy Report: More Milk, More Dumping

The Dairy Report 05/15/18

Milk prices are forecasted to be on the rise for 2018 and 2019 according to the USDA. Unfortunately, dumping milk is predicted to jump, too.

While cow numbers are estimated to remain near 2018 levels, the USDA anticipates 2019 milk production to slightly increase. Due to raised production, discarding excess milk has become an issue in recent months. Up 51 million pounds from 2016, 170 million pounds of milk was dumped in 2017 in the Northeast market compared to 119 million pounds in 2016.

With processing capacity running low, co-op’s like Agri-Mark have, so far, continued to pay farms for excess milk that was dumped.

Two different types of dumping have occurred. Milk is either trucked to a processing plant where the cream is removed to make butter. The leftover skimmed milk is then dumped due to lack of capacity to turn the milk into powder to be stored long-term.

The second dumping scenario permits purchased milk to be dumped on the farm. Erik Rasmussen, Market Administrator of the Northeast Federal Milk Marketing Order approved this practice through July 1, 2018, but dumping is expected to carry forward.

With too much milk and too little processing capacity, dumping excess milk may continue to be a reoccurring problem.

For more on this, watch the video above from AgDay.

Comments
Submitted by Eric Stephenson on Sun, 04/05/2020 - 00:55

Could you educate me on why the excess can't be sent into longer term dairy products like cheese making? I've always wondered this. It seems to me instead of wasting it you could even make very long aged cheese products and if the product is near free I'd think it would be desirable. I know some banks in Europe have cheese vaults as commodity/currency storage and loan collateral.