Dairy Processing - April 2021 - 61

" The supply chain is also proven
to be far more resilient than I
think any of us expected. "
Mark Baum, FMI - The Food Industry Association

the approximately 50,000 dairy farms in the
United States. Milk has a particularly high risk of
expiration and spoilage, so it's crucial to ensure
milk doesn't remain in one place too long. As
a result, the supply chain requires resilience to
eliminate disruptions.
Some of the most poignant images in the early
days of the pandemic showed fresh milk being
spilled out because it couldn't be moved to where
it needed to be distributed in a timely fashion.
The Dairy Farmers of America estimate that
approximately 3.7 million gallons of milk were
dumped every day in April 2020.
The impact of that was felt by processors
who began reducing production and rationalizing
their portfolios in order to meet the demand
of consumers.
" There's now permission to have more efficient
portfolios aligning with consumer needs, demand
being up in retail, consumers seeing items out-ofstock and then just overall efficiencies and how
products are getting to their final locations, " Ms.
Adams said. " Certainly, there was a high increase
in need of freight associated with products going
directly to consumer, but also just the logistics of
keeping products in stock in stores. "
The industry has since smoothed out its
supply-and-demand issues. As the world reopens
and restrictions began to loosen, the industry is
beginning to see what the food landscape will
look like as things begin to improve, especially
as expanded vaccination efforts continue. There
will soon be a clearer picture of what the new
normalization of distribution channels will look like.
" I think that some of those shifts, regardless
of how we look at the back end of this, will
become permanent, " Mr. Baum said. " These ad
hoc partnerships, I think, will become longer term
strategic relationships going forward. The supply
chain is also proven to be far more resilient than I
think any of us expected, and so while we have not
broken, we've been able to get product to where it
needs to be. "

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Dairy Processing - April 2021

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