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  • In South Florida, the cars stretched out for nearly two miles, as thousands of people waited

  • for hours to reach their local food bank.

  • The same thing happened in California, Pennsylvania, and New York City.

  • Food banks across the US are seeing a massive rise in the number of residents in need because

  • of the coronavirus.

  • But on American farms, the economic fallout from the coronavirus looks very different.

  • Here it has led to a widespread surplus of food that's gone to waste.

  • Millions of pounds of perfectly good potatoes, cucumbers and squash left to rot or plowed

  • back into the fields.

  • And dairy farmers forced to dump millions of gallons of fresh milk down the drain.

  • It's all because of a break in the food supply chain.

  • One that, for now, means we have farmers with too much food...

  • and very few options.

  • We're the farmers out here. We're all in this together

  • and if something don't change soon we're going down.

  • To understand why the food supply chain is broken let's look at milk.

  • A very simplified supply chain for dairy products in the US looks something like this.

  • It starts with cows. And a dairy farm where they're milked.

  • That milk is filled into tanks and then sent to processors.

  • There it turns into products like pasteurized fluid milk, cheese, yogurt, or butter.

  • It's then packaged and sent off to grocery stores where consumers can get their dairy off the shelves.

  • But here's the thing, even though a large portion of dairy production is aimed at grocery stores,

  • it's just one of many places where the product ends up.

  • About half of all production is aimed at other avenues like schools and businesses.

  • Starbucks, for example, typically goes through hundreds of thousands of gallons of milk every day.

  • Together, all of these avenues amount to a huge amount of milk production in the US

  • about 218 billion pounds in 2019.

  • Every part of dairy production, from farming to processing and packaging, carries out a specialized process

  • which makes the supply chain efficient under normal circumstances.

  • But as the coronavirus started to spread, and the nation began to shut down,

  • this chain started to look a lot different.

  • Schools and restaurants canceled orders,

  • but the cows at the farm still needed to be milked.

  • A significant drop in demand from these avenues led to way more supply

  • but there's nowhere to send that surplus.

  • Even though more people have been buying dairy at grocery stores during lockdown,

  • the system isn't built to redirect excess supply that easily.

  • We want to get food to the people who need it,

  • and we're trying but

  • when you have a really specialized industry, it doesn't necessarily translate.

  • That's because the same dairy products meant for schools, businesses, and grocery stores,

  • look very different after they're processed and packaged.

  • For example, at grade schools they might take the shape of small milk cartons made for kids.

  • Or massive bags of cheese for food service companies to make lunches.

  • At a restaurant the products might be large 5-gallon containers of milk, or 40-pound blocks of cheese.

  • And at grocery storesthey're the products we're more used to seeing,

  • like single gallon cartons of milk, and small packages of cheese.

  • Converting those school milk cartons into something people will actually buy at grocery stores,

  • would be a massive change.

  • Facilities often don't have the right packaging to make a switch.

  • While other products, like a large block of cheese

  • would need to be cut to a more manageable size for consumers

  • meaning millions of dollars in new equipment that many processors can't afford.

  • You can't deliver a five hundred pound barrel to someone's house and be like here's your cheese.

  • I mean, you have entire plants built for school milk for kids.

  • We could have just sent crates of milk home with parents like here's your crates from the school.

  • Just feed your kid. Where are they going to store it in their fridges?

  • What we have from restaurants and food service just doesn't neatly turns into something that's usable for

  • the average person at home.

  • We're switching as fast as we can but this is unprecedented, right?

  • Some are sending their surplus product to food banks, but these organizations often

  • don't have the refrigerator capacity, or the manpower needed to distribute so much perishable product.

  • And even with shifts in some production from businesses and schools to grocery stores,

  • the new consumer demand likely wouldn't make up for the huge losses from these other avenues.

  • That extra supply leads to an incredible amount of food waste.

  • We started dumping milk March 31st

  • and we dumped seven semi-loads of milk a day.

  • Which is 42,000 gallons of milk a day we dumped for about two weeks.

  • When you think about a semi load like the big tanker trucks

  • you would see out on the interstate, that, hundreds of trucks that size.

  • When you don't have that food getting to people, that's crushing.

  • This food supply chain problem led to a massive drop in milk prices

  • which started to tumble just as the coronavirus took hold in the US.

  • December's milk was 24 bucks.

  • Today it's 10.80. I don't care if you're milking 10 cows or 5,000. It don't matter.

  • 10 dollars and 80 cents is not going to pay the bills.

  • My organic milk is very expensive. It's expensive to make, it's expensive to market.

  • What happens to my milk is it gets marketed as conventional milk.

  • Which is basically about half of what I get paid.

  • It doesn't take much of a math scientist to figure out that you're really in trouble.

  • That drop is just the latest in several years of record-low prices for the dairy industry.

  • Since 2015, milk prices paid to farmers have been well below the cost of production.

  • Factors like rise in corporate farming,

  • trade wars that decreased US exports,

  • and more people choosing milk alternatives,

  • have led to too much dairy, and low prices.

  • It's also led to a dairy farming crisis. In 2014, there were about 45,000 dairy farms in the US.

  • But over the next 5 years, 11,000 dairy farms shut down.

  • That's nine US dairy farms lost every day during that period.

  • That number is likely to increase even more because of coronavirus.

  • Today, many dairy cooperatives, often made up of hundreds of different farms, are taking this hit together,

  • by sharing the burden and making sure not every farm has to dump their milk.

  • Many have enacted quotas to keep production at a level that's more in line with what they predict can be sold.

  • Some are suggesting farmers sell off cows,

  • and others are incentivizing farmers to leave their businesses entirely.

  • We have to cut back 10% of our milk. We are selling cows,

  • we're drying out cows early.

  • We're trying to do whatever we can now to drop our production 10% but it's going to be tough.

  • The US government has allocated payouts for farmers to cover some of these losses.

  • And they've set aside money for government purchases of dairy and other fresh produce for food banks.

  • These provisions could be one way to tackle both the hardships of farmers,

  • and the growing hunger crisis that affects millions of Americans.

  • But while it may be a good first step, many in the industry warn that it could disproportionately

  • help large corporate farms, and fall short of getting small farmers the help they need immediately.

  • As those things run out, who knows what's going to happen.

  • And that's the uncertainty that I feel and I think most other people feel it.

  • We need to have a better plan.

  • The unprecedented amount of extra milk has forced

  • some farmers and processors to think about other solutions, too.

  • Like lobbying pizza chains to put more cheese on pizzas.

  • Or, lobbying for a more controversial long term solution,

  • like setting federal limits on the amount of milk production across the country,

  • so that the supply and the prices will always be stable.

  • We need some help out here, how we're going to get it I don't know,

  • but if we don't get it we're all in big trouble.

  • What's happening with this supply chain in the US isn't just a problem for dairy.

  • It's a problem for farmers across the country

  • who have seen their demands diminish from schools and restaurants.

  • And whether it's milk, or green beans,

  • for farmers, trashing their produce isn't just a financial blow.

  • It's also an emotional one.

  • We work so hard to provide for other people.

  • That's what our calling is. That's why we do this. We're not doing it for the money, that's for sure.

  • And so to see what we provide go to waste

  • has just been really devastating.

In South Florida, the cars stretched out for nearly two miles, as thousands of people waited

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