September 30, 2005

US dairy industry estimates US$40 million losses from Katrina

Losses to the US dairy industry due to Hurricane Katrina were estimated at US$40 million, according to Dairy Farmers of America Inc. (DFA), a dairy industry association.

DFA said it has not yet estimated farmer-related losses caused by Hurricane Rita.

Working with the National Milk Producers Federation, the association had recently submitted a detailed summary of farm losses to the USDA due to Katrina. DFA said dairy industry damages were mainly in Mississippi and Louisiana States.

Dumped milk, clean up, feed loss, infrastructure damage and costs for transporting milk from other states to meet demand in both affected states, were included in the US$40 million loss. DFA said this excluded losses from affected animal health and long-term production losses.

Dairy farmers had already dumped about US$3 million worth of milk because of lost electricity on farms and at dairy processing plants, the USDA said.