America doesn't know what to do with its cheese. It has a 1.39 billion pound of
cheese stock, the highest in 100 years. All because Americans aren't drinking enough milk.
Milk production is high but demand is low, so more and more of it is being turned into cheese.
Result:
Cheese prices have fallen sharply.
And here’s the India story:
Our milk production has been growing faster than ever (over 6% now compared to 4% a few years ago).
Dairy sector stores surplus milk as
Skimmed Milk Powder (
SMP) to tide over seasonal fluctuations. This is then later turned into milk and other milk products.
More milk means more SMP. India normally exports a lot of it but fall in global demand from countries like the United States has led to a glut of SMP in the market.
This means dairies no longer need as much milk as they used to. The result: Fall in milk prices. No wonder farmers have been seen spilling milk on roads in protest.
