Dairy Drops Suppliers After Years of Surplus

A Pennsylvania dairy has cut ties with 11 out of 85 of it’s milk suppliers. Galliker’s Dairy had been running on a surplus for years, incurring significant financial losses after being unable to sell all the milk produced by its suppliers.

By eliminating 13 percent of its suppliers, Galliker’s Dairy will now produce 2 million fewer gallons of milk this year. It currently produces 14.5 million gallons.

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In recent years, milk production volume has increased about 10 percent, while milk sales have decreased. In the first five months of 2017, 78 million gallons of surplus milk was dumped across fields and into farmed animal feed. This was 86 percent higher than last year’s purge.

This surplus is evidence of the growing market for plant-based milk alternatives. The cruelty-free dairy industry is expected to grow to $16 billion by 2018.

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