The Impact of Bird Flu on America's Dairy Industry
Source: dairynews.today
A comprehensive look at how bird flu has affected dairy production in the U.S., with a focus on California, price controls, and the reactions of dairy farmers.
America’s dairy industry faces a significant challenge with the outbreak of bird flu leading to a notable decline in milk production.
In 2024, California, the largest dairy-producing state, saw milk production hit a 20-year low.
Unlike rising egg prices, milk prices remain stable because of federal price controls, yet this stability comes at a cost to dairy farmers who find the price caps financially unsustainable.
"I can’t see how any dairy farm is going to sustain this," said Brenda Cochren, highlighting the severe pressure on farms due to corporate consolidation and outdated pricing formulas.
Despite the USDA's attempt to address these issues by adjusting make allowances, many in the industry criticize the changes for not sufficiently accounting for rising production costs and exacerbating financial strains on small farmers.
The Federal Milk Marketing Order (FMMO), a pricing formula in place for nearly 90 years, is under scrutiny for its inability to adapt to current market conditions. The recent increase in make allowances, effective June 1, has purportedly resulted in a 26¢ increase per 100 pounds of milk, which processors argue helps offset production costs while maintaining low consumer prices.
Still, this adjustment is perceived as insufficient by farmers who face the compounded challenges of industry consolidation, bird flu, and federal price controls.
Lynne McBride of the California Dairy Campaign notes a "perfect storm" of financial hardship as milk production dips and costs rise. The bird flu epidemic has further strained the industry, with the virus causing quarantine measures and increased biosecurity risks, including transmission to humans through raw milk exposure.
In California alone, over 700 dairy herds were infected since August 2024, leading to significant economic and production setbacks.
Other states, like Texas, have also faced bird flu outbreaks but managed to recover better due to earlier epidemic onset allowing recovery time.
Federal and state measures, such as Governor Newsom's emergency proclamation in California, aim to provide necessary resources and flexibility during this crisis.
However, until systemic changes in milk pricing and production practices are implemented, the sustainability and prosperity of America's dairy farms remain uncertain.
In 2024, California, the largest dairy-producing state, saw milk production hit a 20-year low.
Unlike rising egg prices, milk prices remain stable because of federal price controls, yet this stability comes at a cost to dairy farmers who find the price caps financially unsustainable.
"I can’t see how any dairy farm is going to sustain this," said Brenda Cochren, highlighting the severe pressure on farms due to corporate consolidation and outdated pricing formulas.
Despite the USDA's attempt to address these issues by adjusting make allowances, many in the industry criticize the changes for not sufficiently accounting for rising production costs and exacerbating financial strains on small farmers.
The Federal Milk Marketing Order (FMMO), a pricing formula in place for nearly 90 years, is under scrutiny for its inability to adapt to current market conditions. The recent increase in make allowances, effective June 1, has purportedly resulted in a 26¢ increase per 100 pounds of milk, which processors argue helps offset production costs while maintaining low consumer prices.
Still, this adjustment is perceived as insufficient by farmers who face the compounded challenges of industry consolidation, bird flu, and federal price controls.
Lynne McBride of the California Dairy Campaign notes a "perfect storm" of financial hardship as milk production dips and costs rise. The bird flu epidemic has further strained the industry, with the virus causing quarantine measures and increased biosecurity risks, including transmission to humans through raw milk exposure.
In California alone, over 700 dairy herds were infected since August 2024, leading to significant economic and production setbacks.
Other states, like Texas, have also faced bird flu outbreaks but managed to recover better due to earlier epidemic onset allowing recovery time.
Federal and state measures, such as Governor Newsom's emergency proclamation in California, aim to provide necessary resources and flexibility during this crisis.
However, until systemic changes in milk pricing and production practices are implemented, the sustainability and prosperity of America's dairy farms remain uncertain.
