# How Pooling of Dumped Milk Works | Farm Bureau Intel Markets | American Farm Bureau Federation

> 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%.

- Date: 2020-04-14 · published 2020-04-14T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/53777-how-pooling-of-dumped-milk-works-farm-bureau-intel-markets-american-farm-bureau
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

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.

## Read by commodity

- MILK: bearish ▼

## Sources

- fb.org: https://www.fb.org/intel/markets/how-pooling-of-dumped-milk-works

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.