Members of Northeast Dairy Foods Association, Inc., as well as dairy producers and others in the food supply chain have been greatly impacted by the Coronovirus, putting the nation’s dairy farmers and milk processors business’ in great financial jeopardy.
With schools, restaurants and other food services closed or greatly scaled back during this time, it has resulted in the cancellation of dairy product orders on items such as milk, cheese, yogurt, and ice cream. Additionally, the cancellation of orders at unprecedented levels, has led to processors and producers having to dump loads of raw milk, and in turn reduced the amount of milk being purchased from dairy producers. While there is a lack of orders, dumping of raw milk will continue to increase, costing producers and processors thousands of dollars in wasted milk. One load of dumped milk is approximately $10,000 to the producer, and an equal amount is accrued by the processor and the distributors. Dairy farmers and processors are having to dump hundreds of loads of milk, and are bracing to continue dumping milk as uncertainty continues.
The decline of foodservice dairy sales due to restaurant closures has not been offset by an increase in retail supermarket sales. The net decline in dairy sales is estimated to be in excess of 10%, and milk will continue to get dumped given these unfortunate realities. The Dairy industry is in immediate need of support.
Northeast Dairy Foods Association, Inc. is a full-service dairy trade organization representing dairy processors, manufacturers and distributors in the northeast with members in; Connecticut, Massachusetts, Maine, New Hampshire, New Jersey, New York, Rhode Island and Vermont, and include all four federal class products.