The USA’s plan for COVID19 dairy crisis

US estimates claim current milk supply exceeds demand by a whopping 10%.

In a plan put to government, which is at present, a proposal, the nuts and bolts are basically as follows:

1. All producers voluntarily cut milk production by 10% using March 2020 as a baseline.
2. Producers to be paid for the dumped milk until at least June.
3. A working capital loan facility available to processors.
4. Large purchases of dairy products to be distributed to food banks. This latter point has evidently received traction as part of a US government plan to buy milk, meat and a range of agricultural products to be used by food banks or in International Aid. It’s part of a phase 1 $15.5 billion (£12.5 billion) package.

It’s a very ambitious plan to which the outcome is it be confirmed.