As the number of confirmed COVID-19 cases in Wisconsin continues to grow, Wisconsin’s dairy industry is struggling to combat the economic fallout of the virus as the prices of dairy products plummet.
The pandemic forced many restaurants and schools to close down. These closures have impacted the dairy industry as closed restaurants can no longer purchase farm-sourced cheeses. Similarly, schools, which consume 7% of all liquid milk, are no longer able to purchase it, according to the Institute for Agriculture and Trade Policy.
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The financial woes wrought on the dairy industry by COVID-19 come at an already trying time for small farm owners due to increasing competition with big agribusiness and lower dairy costs. In 2019, Wisconsin lost 10% of its dairy farms.
The National Milk Producers Federation President and CEO, Jim Mulhern, outlined the ramifications of the ongoing pandemic for the dairy industry, according to a Feedstuffs article.
“Over the last five weeks, the [U.S. Department of Agriculture’s] estimate of 2020 milk prices reflect a drop of about $2.85 billion at the farm level,” Mulhern said. “Further drops are possible as the impact of the COVID-19 outbreak spreads.”
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As farmers continue to produce dairy, many are left with excess product. The National Milk Producers Federation is weighing its options to relieve the industry, including compensating the farmers for the milk they are unable to sell, according to a Feedstuffs article.
