Bird Flu Impact on Dairy Sector Minimal, But Industry Remains on Alert
Source: The DairyNews
Four months after the first cases of bird flu in dairy cows, the dairy industry has not experienced significant disruptions in milk production or pricing, according to industry experts and academic studies.
Despite isolated incidents across 160 cow herds in 13 U.S. states, the broader dairy economy has remained stable, with milk prices and consumer demand largely unaffected.
Chuck Nicholson, an agricultural economics professor at the University of Wisconsin-Madison, noted, "Fortunately for the industry and consumers, we haven't seen major impacts yet." He added that while the immediate future remains uncertain, the industry is cautiously optimistic that significant disruptions can be avoided.
Since the initial detection in late March, the price of milk has maintained stability, with the latest USDA data indicating an industry price of $22 per 100 pounds. Alan Bjerga, a spokesperson for the National Milk Producers Federation, highlighted that consumer confidence remains high, with no noticeable impact on purchasing behaviors.
However, concerns exist about the potential for wider spread of the virus, which could lead to temporary disruptions in milk supply. Mark Ernst, Illinois’ State Veterinarian, explained that affected cows typically recover within 30 days, though their milk production may not immediately return to normal levels. This could lead to a slight increase in milk prices if production decreases significantly.
The USDA has taken measures to mitigate financial losses for farmers, announcing compensation for dairy farmers with infected cattle at 90% of the value of the lost milk, a move akin to crop insurance. Additional state-level precautions include mandatory testing for dairy cattle at exhibitions to prevent the spread of the virus.
Tasha Bunting, executive director of the Illinois Milk Producers, emphasized the industry's focus on consumer reassurance, stating, "The dairy products available in stores undergo a rigorous health and safety process, ensured by pasteurization."
While milk consumption as a beverage has declined over the decades, the demand for other dairy products like cheese continues to grow. This trend underscores the resilience of the dairy market amidst challenges. The industry remains vigilant, preparing for all possibilities as it navigates the ongoing situation with bird flu in dairy cattle.
Chuck Nicholson, an agricultural economics professor at the University of Wisconsin-Madison, noted, "Fortunately for the industry and consumers, we haven't seen major impacts yet." He added that while the immediate future remains uncertain, the industry is cautiously optimistic that significant disruptions can be avoided.
Since the initial detection in late March, the price of milk has maintained stability, with the latest USDA data indicating an industry price of $22 per 100 pounds. Alan Bjerga, a spokesperson for the National Milk Producers Federation, highlighted that consumer confidence remains high, with no noticeable impact on purchasing behaviors.
However, concerns exist about the potential for wider spread of the virus, which could lead to temporary disruptions in milk supply. Mark Ernst, Illinois’ State Veterinarian, explained that affected cows typically recover within 30 days, though their milk production may not immediately return to normal levels. This could lead to a slight increase in milk prices if production decreases significantly.
The USDA has taken measures to mitigate financial losses for farmers, announcing compensation for dairy farmers with infected cattle at 90% of the value of the lost milk, a move akin to crop insurance. Additional state-level precautions include mandatory testing for dairy cattle at exhibitions to prevent the spread of the virus.
Tasha Bunting, executive director of the Illinois Milk Producers, emphasized the industry's focus on consumer reassurance, stating, "The dairy products available in stores undergo a rigorous health and safety process, ensured by pasteurization."
While milk consumption as a beverage has declined over the decades, the demand for other dairy products like cheese continues to grow. This trend underscores the resilience of the dairy market amidst challenges. The industry remains vigilant, preparing for all possibilities as it navigates the ongoing situation with bird flu in dairy cattle.
