COVID-19 Impact on Dairy Supplies
The global COVID-19 pandemic has affected many businesses severely. The dairy industry is no exception to that matter.
You might be wondering, “What does milk have to do with COVID-19?”
Let’s begin with dairy supplies over the past five years. In the US alone, the production saw exponential growth in the first quarter only. The milk market reached a massive $27.19B revenue in 2020, making it a promising industry in the future.
Farmers can’t control dairy production, like most natural produce. You can’t stop carrots from growing, just like you can’t stop cows from producing milk.
A surplus of milk might seem like a good thing. However, with so much milk and no transportation, there’s nowhere for the milk to go.
As soon as the pandemic hit, the dairy industry faced a significant step back. There was a continuous decline ever since the authority urged the lockdown. In brief, many businesses had to close down to avoid virus transmission. Most companies managed the drawback quite well, but not with the dairy industry.
The lack of transportation due to the imminent lockdown caused uncertainty in the dairy industry. No one was sure when the next delivery was.
So, How did the COVID-19 Impact Dairy Supplies?
Production excess meant one thing– inevitable dairy dumping.
It was such a terrible move to practice as the dairy industry had been inclined to a significant cause of global warming and deemed as an unsustainable business in the long run.
Dairy companies had to dump an estimated 3.7 million gallons of milk every day during the lockdown. However, it was the last resort for them as it cost less in the short term.
The infographic below represents how the COVID-19 pandemic impacted the dairy supplies heavily. It is a summarization of what was happening on the dairy farm during this challenging time.
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