Turning off the Milk spigot…
…not as easy as the water one. A worldwide high demand for milk products grew along with a worldwide boom, and producers went nuts trying to keep up with it. In places like China, they turned to all sorts of ugly gimmicks to stretch the milk, and fed cattle contaminated feed to produce more and cheaper milk.
And then, as the boom turns to bust, there’s this little problem of what to do with the milk that people can’t afford so much anymore….
Mr. Van Groningen’s company does not own the surplus milk powder, but merely stores it for the new owners: the taxpayers of the United States. To date, the government has agreed to buy about $91 million worth of milk powder.
“The thing is, they are going to produce it because they have to milk the cows,” Mr. Van Groningen said. “It’s like a river. It keeps coming.” In addition, dairy farmers are all too aware that, unlike industrial machinery, cows cannot be turned off and stored until economic conditions improve; they must be fed and cared for, at continuing expense.