School and restaurant shutdowns could have a long impact on the dairy market and analysts do not believe prices will recover by October of this year.
“We will maybe have recovered about half-way and we will still be $4 dollars per 100 weight down at where we were pre-coronavirus,” Peter Vitaliano, the Vice President of Economic Policy and Market Research for the National Milk Producers Federation, said.
The dairy industry welcomes assistance from the government, but dairy leaders want the USDA to be more transparent with the payment formula when it comes to financial aid. As Congress considers another stimulus bill, dairy looks to push for a portion of the relief funds.
“If the government doesn’t step in to help stimulate the economy in various ways, then we are going to see a prolonged period of loose demands, high unemployment, and really terrible conditions,” NMFP Senior VP of Membership Services and Strategic Initiatives Chris Galen said.
The USDA recently announced the Dairy Dairy Revenue Protection Program will include payments to producers that were forced to dump milk.
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