Due to the low milk prices, dairy processors in the region are developing strategies to decrease the supply of milk on the market. South Dakota Dairy Producers Association President Marv Post says Land O’ Lakes announced last week they would be buying out the equity positions of some of their farmer customers.

Evan Metzger with Multi-Rose Jerseys of Rock Rapids, Iowa says they also received a letter from Dean Foods that they would be losing their bonus.

Rod Johnson, Executive Director of the Nebraska State Dairy Association says they’re in need of additional processing in the state and this kind of consolidation is a step backwards for the industry.

Officials expect the continued low milk prices will also force some attrition, which is similar to past depressed market cycles.