US dairy farmers are expected to take a big hit as a result of the COVID-19 crisis, industry analysts say.
Markets are falling daily as the impact of the virus is felt across the supply chain. Some analysts are now predicting that prices could plummet 20 per cent, bringing the industry back to 2008 levels.
Although there has been an increase in retail demand as people stock up on groceries and forego restaurant meals for eating at home but analysts say it’s unlikely to offset losses in the food service industry as well as the loss of the school lunch program as schools remain closed.
For example, a 20% decline in restaurant sales across the country for three months would likely equate to total milk equivalent disappearance being down one to two per cent for the year.