
The American Farm Bureau explains how the Federal Order milk pooling system distributes revenue when cooperatives direct farmers to dispose of milk. Stay-at-home orders cut foodservice demand while retail gains were short-lived, and Class III and IV futures are down more than 30% since COVID-19 emerged.
Some cooperatives are now asking producers to cut supplies by nearly 20%.
Supply-cut requests and pooling mechanics signal persistent oversupply risk in the milk complex, which keeps dairy prices depressed and reduces demand for dairy-related feed ingredients.
Not enough comparable past events yet for a historical read.
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