| | | We need to eat diary cows.
So, is there overproduction?
In simple terms, yes. The world dairy market is currently oversupplied with milk thanks to overproduction and declining consumer demand because of the rising popularity of beverages like almond milk and soy milk. Russian sanctions against Western agricultural imports – including dairy goods from Europe – and fluctuating demand from China have also affected the global dairy marketplace.
Dairy farmers around the world are struggling. Australia, for instance, recently approved a $450 million bailout package for its dairy industry, while the European Union offered its dairy farmers €500 million in additional support last July. In the United States, agriculture secretary nominee Sonny Perdue, who grew up on a dairy farm, was recently peppered with questions during his confirmation hearing about how government could help ease the hardship of the country’s dairy industry, which is facing historically low prices.
The American agricultural industry is heavily subsidized. In WTO filings, the U.S. reported in 2012 that it had paid out $3.84 billion in direct payments to producers. Further, the U.S. has several dairy price support programs in place for its dairy industry that have paid out millions in support for the sector.
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