Ag Report: Pandemic brings lingering changes for dairies

Posted at 11:33 AM, Jul 08, 2020
and last updated 2020-07-08 14:33:05-04

Americans' shopping and eating behaviors will likely be altered for the next 12 to 18 months as a result of the pandemic. And a new analysis claims dairy supply chains will need to adjust.

The cooperative lender CoBank says people have bought more fluid milk and processed cheese during the pandemic. With stay-at-home orders affecting restaurant demand, the report says, some dairy processors will need to retool to make products for at-home consumption.

As the pandemic sends shock waves through the agricultural economy the long-term driver of California farmland values remains access to reliable water supplies. Speakers at an online agricultural business conference said local agencies face a "daunting task" of balancing water supplies with demand.

Agencies will work to increase supplies and will likely employ solutions that include land idling and water markets.