Dairy Supply Chain Takes A Hit

Apr 06, 2020

The dairy sector is another industry feeling the impacts of the shutdowns associated with COVID 19.

Like many other commodities, COVID 19, has created fluctuations in the dairy market.

Dairy Farmers of Canada says the virtual shutdown of the restaurant industry and changing grocery shopping patterns have had a significant impact on the demand for key dairy products.

The supply versus demand story is hitting the dairy sector hard as producers dispose of raw milk due to the lack of demand.

Stats show that there are 516 dairy farms in Alberta and 165 in Saskatchewan.

The situation is not unique to Canada as other countries around the world face similar stories including the U-S.

In order to keep dairy cows comfortable and healthy, they must be milked on a regular basis, as each animal produces a certain amount of milk each day.

Dairy farmers and processors are committed to producing a safe consistent supply and are donating significant volumes of dairy products to food banks where they can, but the volume of supply compared to the demand is an issue.

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