US has milk supply glut, but is dumping it in holes

United States cows are producing surplus milk these days, that some is ending up in dirt pits because dairies can’t find buyers.

Domestic output is set to be the highest ever for a fifth straight year.

Farmers are still making money as prices tumble because of cheaper and more abundant feed for their herds.

Supplies of raw milk are topping capacity at processing plants in parts of the U.S. and compounding a global surplus even with demand improving.

Agri-Mark, a 1,200-dairy cooperative in New England that had $1.1 billion of sales last year, started pouring skim milk last month into holes used for livestock manure.

Read more: http://www.bloomberg.com/news/articles/2015-07-01/milk-spilled-into-manure-pits-as-supplies-overwhelm-u-s-dairies?cmpid=BBD070215_BIZU.S. farmers expanded after futures on the Chicago Mercantile Exchange surged to a record in September