Tractors and milk

Texasmark1

Well-known Member
You guys that use tractors in your dairy business: I recall a news clip not too long ago to the effect that producers were pouring out millions of gallons of milk daily. The grocery stores here have had a supply problem since our recent deep freeze down here. Any comments on the subject?
 
The dumping was last spring... so far not this spring, or at least to the same extent. I can imagine in the areas of the south hit by the weather, there could have been some... if there's no electricity, bottling plants, cheese plants, etc can't run. Most farmers usually have generators or some other plan "B", but not all milk plants do.
 
I live in the east. We had a few farmers dumping milk approx a year ago now if memory serves. That was because they lost their market (primarily Dean Foods). There was a lot of milk on the market and they were having trouble finding another firm to buy their milk. This lasted perhaps a couple weeks and people either quit milking or eventually found another market. Milk prices are back up and I have not heard of anyone dumping milk in quite some time now.
 
(quoted from post at 06:27:17 03/04/21) You guys that use tractors in your dairy business: I recall a news clip not too long ago to the effect that producers were pouring out millions of gallons of milk daily. The grocery stores here have had a supply problem since our recent deep freeze down here. Any comments on the subject?

First off, the two issues are not related.

As others have pointed out, the dumping was last spring when all the restaurants and schools were shut down and the milk processors had nowhere to go with roughly half their milk.

The supply issues in Texas were caused by the IMPASSIBLE ROADS. There was plenty of everything but trucks couldn't get to the stores because of the extreme weather conditions.
 
The milk market is and has been back to normal. As others have said most of the dumping had to do with nnalert issues last spring. Auctions are starting to happen and prices are looking very strong on equipment.
 
Some of the dumping last spring was because of packaging. The market changed suddenly and some processors did not have the packaging equipment to meet the new demand. I.E. a processor had equipment to fill 8 ounce paper cartons for school lunches, the schools closed and there was not much other market for milk in 8 ounce cartons.
 

Milk pricing has always run in cycles and always will. Too many guys want to milk too many cows, and each cow keeps giving a little more. The price goes up more cows get milked price goes down a little further than before.
 

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