Displaced dairies find home for their milk

By MAA
Three processors in Minnesota have stepped up to accept milk from 10 Minnesota farms whose milk buyer gave notice it would no longer take those farms’ milk after April.
The move came as Canada changed its pricing regarding ultra-filtered milk coming from the United States, which caused Canadian buyers to cancel their contracts with U.S. processors. In addition to Minnesota, farmers in Wisconsin and New York have also been affected.
The Minnesota Milk Producers Association worked as a facilitator to raise awareness and connect resources to help producers find a new home for their milk.

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Canadian trade policy change hits milk processors hard

By MaryBeth Matzek
MAA Editor

When Canada abruptly changed its dairy trade policies last month, Grassland Dairy Products Inc. lost $100 million worth of its annual business.
The Greenwood, Wis.,-based dairy processor previously sold the equivalent of 1 million pounds of milk each day to Canada. After a Canadian buyer said it would immediately stop purchasing from Grassland due to new dairy regulations, family-owned Grassland quickly looked for ways to incorporate some of that 1 million pounds of milk into its operations. The company was able to find use for some of it, but not all. On April 1, Grassland sent a letter to several dozen milk producers informing them that after May 1, it would no longer purchase their milk.

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Canadian trade policy change hits dairy farmers hard

By MaryBeth Matzek
MAA Editor

When Canada abruptly changed its dairy trade policies last month, Grassland Dairy Products Inc. lost $100 million worth of its annual business.
The Greenwood, Wis.,-based dairy processor previously sold the equivalent of 1 million pounds of milk each day to Canada. After a Canadian buyer said it would immediately stop purchasing from Grassland due to new dairy regulations, family-owned Grassland quickly looked for ways to incorporate some of that 1 million pounds of milk into its operations. The company was able to find use for some of it, but not all. On April 1, Grassland sent a letter to several dozen milk producers informing them that after May 1, it would no longer purchase their milk.
“That’s the last thing you want to do as a company. You don’t want to hurt any of the farms,” said Goedhart Westers, vice president of business development at Grassland. “There was nothing wrong with those farmers. There was nothing wrong with their milk. We just had no place for it.”
The largest independent butter producer in the United States, Grassland purchases milk from more than 600 Wisconsin dairies.

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