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Batavia, NY - The extreme cold and associated energy problems caused significant disruptions at dairy processing plants this week. We are aware of plants that were either shuttered or running at reduced schedules in Texas, New Mexico, Kansas, and Colorado. Fluid milk and milk powder plants were the most affected. And due to the lack of capacity, we estimate farmers dumped about 40 million lbs of milk this week, equal to about 0.2% of the country's milk production during the month. Significant. But not high enough to turn markets in Chicago.

 

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