MILK IS FLYING OFF THE SHELVES as consumers eat at home in the wake of the coronavirus. Grocery sales may be up as much as 40% to 50%, indicated The Wall Street Journal. These sales would be more than enough to counteract school sales that represent 8% to 10% of the market.
HEALTHY FOODS AND CHILDREN AT HOME are two reasons for a spike in fluid milk sales. Also, milk is a major source of vitamin D.
“VITAMIN D SUPPLEMENTATION reduces the risk of respiratory infection . . . and can limit the risk of other viruses such as influenza,” said Tom Frieden, the former director of the U.S. Centers of Disease Control.
“HIGHER COVID-19 MORTALITY RATES among older people and those with chronic conditions suggest that a weakened immune system contributes to poor outcomes,” continued Frieden. Overall, 40% of Americans are vitamin D deficient, and that vitamin might help ward off COVID-19.
MILK PLANTS COULD WEATHER THE STORM as existing standard operating procedures should be effective to achieve adequate disinfection of COVID-19. There is one fly in the ointment — labor. If a plant had numerous employees unable to work, that could impact productivity.
PRESIDENT TRUMP: “IF YOU WORK in a critical infrastructure industry, as defined by the Department of Homeland Security, such as healthcare services and pharmaceutical and food supply, you have a special responsibility to maintain your normal work schedule.” See page 222 for more.
WHILE GROCERY SALES ARE UP, restaurant sales have suffered deep declines amid business shutdowns. Reports indicate Mozzarella orders are slipping due to slowed sales among food service vendors.
MARKET ANGST SENT FUTURES DOWN. On February 10, Class III contracts averaged $17.55 per cwt. Exactly one month later, those same contracts netted $16.60 and by March 24 fell to $15.90 for March to December 2020 contracts. That was a 9.4% market downturn.
DAIRY MARGIN COVERAGE PAYMENTS could occur in March, April, and beyond based on the current mix of future contracts and feed prices. Less than a month ago, there was little likelihood of that scenario. Only 13,059 farms signed up for 2020 coverage compared to 23,389 last year.
LOST IN THE COVID-19 PANDEMIC was the fact the Canadian Parliament approved the United States-Mexico-Canada Agreement (USMCA). The trade pact locks in and expands opportunities for dairy exports.
AMID OBJECTIONS, DFA AND DEAN FOODS determined to proceed without being the “Stalking Horse Bidder” and no bid protections.
THIS WITHDRAWAL BY DEAN of its request for a Stalking Horse Bidder does not signal a withdrawal by DFA from the bidding process.
THE DEADLINE TO SUBMIT A BID for one or more assets is March 30. The deadline to file and serve “sale-related objections” is April 1. A hearing to consider the proposed sale orders would be held the morning of April 3