The dairy industry, like many sectors, is plagued by disruptions from the coronavirus pandemic. Sales of dairy products have been stymied by limited demand and a growing supply glut, which is forcing some dairy farmers to dump milk.

Dairy farms, as of late, have been forced to dump tens of thousands of gallons of milk as the market becomes dangerously oversaturated. Processing plants are running out of inventory space for milk and are unable to take any more shipments, which has forced entire days' worth of production to be dumped at farms.

The spiral in demand stems from multiple factors, mainly from the mass closure of businesses and institutions that consumed much of the milk now accumulating in the inventories of distributors. Schools, which have currently been closed for weeks nationwide, were one of the dairy industry's prominent customers. Even though some schools are partially open to serve food to children and families in need, the drop in demand for milk and dairy products by school cafeterias has been significant. The closure of restaurants has had a similar effect, with an estimated 40% of dairy volume flowing into the foodservice industry.

While initially, supermarket runs had seen basic commodities such as milk, bread, and eggs flying off shelves at markets, purchase limits enacted by grocers has contributed to a decrease in demand and has had the inverse effect of adding to the dairy industry's strain.

Much like other sectors, the decrease in overseas demand has impacted the dairy industry. While some exports are still being sent to countries such as China, where the pandemic began, it is a far cry from the pre-pandemic volume that many distributors were used to.

The supply glut and resulting strain placed on the dairy industry comes at a time when financial problems are plaguing the dairy industry, with not even industry staples being safe from the turmoil. Before the pandemic, major companies had been facing financial woes; for example, Borden Dairy Co, one of the oldest dairy producers in the United States, filed for bankruptcy in January. The industry has been facing declining milk consumption for decades, which has forced many dairy farms into closure. It has likewise caused significant companies such as Borden or Dean Foods (DFODQ  ) significant financial issues.