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Dairy industry shaken by global containment

by drbyos

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The world dairy industry is struggling to adapt to the sudden change in consumption habits caused by the confinement of populations. Extremely rare in France, dairy farmers are invited to produce less milk when we are in the peak of collection.

Produce 2 to 5% less, in exchange for compensation of 32 cents per liter not produced. This is what the French dairy industry, which brings together producers and industry, offers to breeders, if the European Commission gives the green light. Not easy at peak production, where cows can finally graze outside. They will have to reduce their food intake, and go from two milkings to one milk per day.

Less cheese, lots of milk powder

It’s about slowing the plunge in milk prices, which the industry is struggling to absorb. Consumption of cheese products has dropped sharply, with restaurants and canteens closed to prevent the spread of the virus. Confined, individuals abandon cut cheese. They favor fresh milk, yogurts and butter.

The industry must adapt in emergencies and sometimes like in the Great East, with 20 to 30% fewer staff. It is also necessary to transform the surplus milk into powder, the drying towers are running at full speed, but this accelerates the fall in prices.

China has turned away from dairy

A fall in world milk prices which continues three months after the closure of China. As the world’s leading importer of dairy products, China has turned away from this type of food even more massively. It is just beginning to send the missing containers back to exporters from other continents.

In India we throw milk

With containment spreading to all other regions of the world, falling milk prices have become a global phenomenon. In Europe, Germany lost its Italian market. In the United States, breeders are also struck by the fall in consumption.

In India, they begin to throw milk into the ditches. With authorities banning transportation from state to state, the milk no longer reaches factories. Kenya, for its part, increased its producer price, but because it closed its border to milk from neighboring Uganda, where the farmers complain of an eightfold cut in their remuneration.

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