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Economy
Supply chain disruptions impacting dairy farmers amid ongoing COVID-related issues
2021-10-23
[FoxNews] The nation’s dairy farmers are feeling the squeeze of the pandemic, as supply chain issues are raising the cost of producing and packaging milk. Basic resources are getting expensive for dairy farmers. For some smaller farms, it’s making it hard to pay the bills.

"At the end of writing all the checks and seeing what I had to pay, I had $3 left for the week," said Carolyn Adkins, owner of Tucker Adkins Dairy in York, South Carolina.

The farm produces about 30 gallons of raw milk per day, and some of the business’s nearly 70 cows are milked every morning. But during the pandemic, buying feed for the cows hasn't been cheap.

"On average it cost us around $250 a ton, now it’s close to $350 a ton," Adkins said.

"If you are a dairy farmer anywhere in the country you are seeing increases in everything you need to produce milk," said Alan Bjerga, a spokesman for the National Milk Producers Federation.

So if the cost of business is rising for farmers, why can’t milk prices just be raised to compensate? Bjerga says it's not that simple.

"Dairy is a perishable product, it can’t just sit there forever before it’s consumed. So there’s always that pressure to get the product out," he said.

Bjerga says the cost of milk has gone up about 1% over the past year, but consumer inflation has risen 5%.
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