Regarding the May 4, 2020, Hoard’s Dairyman Intel article, “How serious is the oversupply of milk?", I would like to add a factor not mentioned.

As some areas of the country have not cut back production and continue to oversupply manufacturing plants, inventories will build. That will delay any price recovery because those inventories are included in how markets react going forward. We all remember what a mountain of milk powder in the European Union did to our prices not so long ago.

Any area that does not have a sale to an end user should immediately lower production through mandatory restrictions on farms. Not only should co-ops insist on this, but also processors that have a stake in the security of the milk supply and lenders that have a stake in the well-being of their loan portfolios.

Matthew Lussier, Lussier Dairy Inc.
Hawthorne, Fla.

To comment, email your remarks to intel@hoards.com.
(c) Hoard's Dairyman Intel 2020
May 14, 2020
Subscribe to Hoard's Dairyman Intel by clicking the button below

-