- The U.S. is in the midst of a serious milk surplus, so much so that some farmers have resorted to pouring out excess milk into holes meant for livestock manure. "Dairies in the Northeast dumped 31 million pounds of milk in the first five months of 2015, including 7.9 million in May, which was 67 percent more than the same month last year, USDA data show," according to Bloomberg.
- As a result of the surplus, milk prices have tumbled globally, having decreased 39% from a record high in February 2014, and are the lowest in five years, according to United Nations data.
- Dairy processors like Dean Foods Co. are benefiting from the low prices, which have led to slowing the food inflation pace.
Earlier this year, Dean Foods Co., the U.S.'s leading milk producer, created a new label, DairyPure, which consolidated the company's more than 30 dairies and became the first national branded fresh white milk. This effort was one strategy Dean Foods had to combat the decline in demand for dairy milk in the U.S. as more consumers look to other beverage categories or turn to plant-based dairy alternatives like almond and soy milk.