Posted by coonie minnie on April 22, 2017 at 10:23:29 from (50.105.205.204):
In Reply to: Michigan milk posted by rrlund on April 22, 2017 at 08:05:17:
MI (and other states) are dumping milk in WI- I've heard prices of $5-6 per cwt. Plants are running over capacity here, and there is NO extra room. 75-100 dairy farmers will be dumped by their processor May 1 (Grassland Dairies). A few of those maybe 15, perhaps more, have found other places to go, many have not. There are some pretty nice farms in the group. This is probably the first time in the past 100 years or so there has not been enough capacity in WI... but again, that is because of distressed milk coming in from MI, SD, etc.
The Canadian issue with this is that some US butter plants (Grassland one of them, 2 in NY too) were selling the the non fat (ultrafiltered milk) into Canada to use in cheese production. Ultrafiltered milk, being a relatively new product, was not covered under trade agreements like NAFTA. Not any more- the border has been closed to those shipments of ultrafiltered milk- hence the layoff of 75-100 dairies here in WI by Grassland.
It is a big mess. Prices for butter, cheese etc are still good, but there is not enough plant capacity to go around. If it were grain, you'd pile it somewhere. Hard to do that with milk.
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