---
title: Why Millions of Gallons of Milk Are Being Thrown Out
description: Dairy farmers, hurt by oversupply and prices that have plummeted by 35%, have been dumping millions of gallons of milk they can't sell.
authors:
  - name: Martha C. White
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published: '2016-10-12T16:13:55.000Z'
modified: '2024-04-17T04:08:16.000Z'
section: Business
tags:
  - Food &amp; Drink
  - Milk
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canonical: https://money.com/milk-glut/
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source: structured-blocks
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![milk-glut](https://img.money.com/2016/10/milk-glut.jpeg)
*Well water testing has uncovered dangerously high level of nitrates in the water in areas of this farming community about 160 miles north of Los Angeles. Fertilizers and cow manure are among the leading causes of nitrate pollution in well water. Too much nitrate in drinking water poses a risk to infants under six months of age including a condition called "blue baby syndrome" / AFP / Robyn BECK (Photo credit should read ROBYN BECK/AFP/Getty Images)*

Got milk? If you ask America's dairy farmers, the answer is a resounding "yes," and that's a problem.

An enormous milk glut is has prompted dairy farmers to dump 43 million gallons of milk, the [*Wall Street Journal*](http://www.wsj.com/articles/americas-dairy-farmers-dump-43-million-gallons-of-excess-milk-1476284353) said. There isn't enough spare capacity on trucks to haul the milk to processing facilities, and even when there is, the farmers can't afford to pay, since the oversupply of milk is putting a damper on how much they can sell it for. [According](http://www.usda.gov/wps/portal/usda/usdahome?contentid=2016/10/0220.xml) to the U.S. Department of Agriculture, dairy farmers' earnings have tanked, falling by some 35% over the past two years.

Dairy farmers' problems are two-fold: overproduction and declining interest in the beverages as a whole. After dairy prices spiked in 2014, farmers ramped up production, helped out by falling prices for commodities like corn and soybeans that are used as animal feed. What's more, Americans just aren't as into milk as they used to be: Whole milk is viewed warily by people trying to monitor their saturated fat intake, and some producers report that even skim milk sales are [falling](https://money.com/americans-arent-drinking-skim-milk-anymore/). In the meantime, dairy-free alternatives like almond milk and coconut milk have been gaining ground.

While dairy milk is falling out of fashion, Americans are ingesting more butter and cheese — about a pound per person more than last year, the *Journal* said, citing U.S.D.A. stats. So dairy producers are trying to sop up the milk glut by cramming more cheese and butter into fast-food menu items and school cafeteria dishes, the *Journal* said.

The U.S.D.A. is trying to help out farmers and shore up the market by purchasing more dairy products. Yesterday, the agency announced it [would buy](http://www.usatoday.com/story/money/nation-now/2016/10/11/us-government-buy-20-million-glorious-cheddar-cheese/91908058/) $20 million worth of cheddar cheese from producers, on top of another $20 million [purchase](https://time.com/4463378/cheese-usda-buy-20-million-surplus/) of cheddar back in August. (The U.S.D.A. funnels all this cheese to places like food pantries.)

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