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News Link • Agriculture

America Has A Milk Problem

• https://www.zerohedge.com by Fred Dunkley

Declining consumption, increased production, retaliatory tariffs and lower prices in the face of increased costs have been walloping American farmers for some two years now, according to the Reedsburg Times Press.

Northeastern states are the most affected by the glut. The State of Wisconsin has seen a net loss of more than 400 dairy farms this year alone, and in December last year, the state's farmers dumped a record 160 million pounds of skim milk they couldn't sell. That's three times the amount they were forced to dump in 2012, according to CSMonitor.  

By July, farmers in the Northeast had dumped 145 million pounds of milk, and 23.6 million pounds of that was dumped in July alone, according to Bloomberg.

Much of the blame will be laid on Canada, which moved last year to implement its own supply management by restricting dairy trade from the U.S.

But the blame isn't all about Canada, and you have to follow some less direct paths to the end of this glut.

For instance, the European Union has also seen a surge in its exports of dairy, and because Russia in 2014 largely banned all dairy exports from the EU, the EU has tapped up other markets, pushing out American dairy.

Nor is it just about exports.

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