Milk is being dumped, because fear of spreading Foot and Mouth, has prevented farm milk pickup. Some inter-country dairy product movement is allowed, but documentation requirements have increased. In the Northeast, milk supplies are steady and Class I demand is being met. However, manufacturing plants are not getting the milk they want. In the Central US, Class I demand is strong, but milk supplies are tight.
Manufacturing plants are on reduced schedules.
The tightening manufacturing milk supplies are being felt in cheese and butter prices. The tightening supplies here in the US and the European scramble for dairy products could translate into significantly higher producer milk prices and consumer dairy product prices.