Coronavirus forces dairy farmers to dump milk meant for restaurants
Coronavirus forces Wisconsin dairy farmer to dump 25K gallons of milk a day
Coronavirus has led to a drop in milk demand from restaurants, leaving dairy farmers to grapple with supply they can’t store. FOX Business’ Grady Trimble with more.
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Dairy farmers across the nation are being forced to pour portions of their milk supply down the drain after the coronavirus pandemic choked off demand from restaurants.
One of them, Ryan Elbe of Golden E Dairy Farm in West Bend, Wisconsin, is disposing of more than 25,000 gallons per day.
"We thought this would never happen,” Elbe told WISN-TV. "Everybody’s rushing to the grocery store to get food, and we have food that’s literally being dumped down the drain.”
Among the challenges is that restaurants and hotels buy in greater bulk than consumers at grocery stores, and even if some demand carries over due to families stocking up for extended periods of sheltering in place, supply chains can't be easily transformed to produce the smaller packages that the general public would buy, the Wall Street Journal reported.
DAIRY FARMERS FACING CRISIS AS MILK CONSUMPTION, PRICES DECLINE
In Wisconsin, about one-third of the state’s dairy products, mostly cheese, are sold in the food-service trade.