A CoBank report shows U.S. milk production growth is outpacing processing capacity growth leaving dairy processors struggling to keep pace. The CoBank report says processors will need an estimated 27 billion pounds more of milk processing capacity over the next ten years if current trends persist. Minnesota Milk Producers Association President Dave Buck says their state needs more processors.
He says this past session their state legislature provided some assistance for overall ag processing capacity.
Buck says the lack of processing also hurts dairies trying to expand.
Another thing that’s happening is dairy cooperatives are largely bearing the brunt of the near term oversupply of milk and are then discouraging producers from expanding.
