According to Matt Herrick, senior vice president, executive and strategic communications, International Dairy Foods Association (IDFA), the national milk carton deficit could be alleviated by early 2024.
“We are not able to pinpoint a cause of the shortage,” he told reporters. “However, all signs point to the supply challenge easing by early 2024 following holiday breaks at schools, which should give packaging providers and processors time to rebuild stock.”
Herrick noted that school meals are vital for children, with 30 million pupils receiving breakfast and lunch each day in our schools, and milk being a key component of those meals.
“That is why we are doing everything we can to ensure milk remains on the tray,” Herrick said. “As previously reported, one industry supplier of half-pint milk cartons is unable to meet all carton orders in the near term.” According to media sources, Pactiv Evergreen supplies between two-thirds and three-quarters of the cardboard for half-pint school milk cartons.”
According to IDFA, three packaging providers provide cartons to practically the entire US school milk market. “An important lesson learned from the COVID supply chain challenges is that our industry needs to do a better job of building greater resilience into our supply chain.” “In talking with our members, there is a greater appreciation for supplier diversification to avoid these types of challenges in the future,” Herrick observed.
“At this time, we are not aware of any widespread school milk shortages, but the situation remains fluid.” Shortages appear to be sporadic and localized at this moment. As a result, we urge any stakeholders who contact us not to panic. Instead, we encourage teamwork,” he added.
Aside from the one packaging company, several other packaging companies have increased carton manufacturing or formed new agreements with processors, according to Herrick. “Based on what we’ve heard, school milk processors are seeking out and entering new partnerships with packaging providers.”
The nationwide milk scarcity, which has been identified as half-pint milk cartons, has received a lot of attention. U.S. Senate Majority Leader Charles E. Schumer has called on the USDA to intervene in the nationwide milk carton crisis, which is affecting dairy producers and schools in his home state of New York and across the country.
Schumer urged the USDA to not only provide New York dairy farmers with the technical assistance they need to get through the shortage, but also to collaborate with industry leaders to devise creative solutions to get milk into our school lunchrooms and to investigate the shortage to prevent future disruptions and minimize downstream impacts.
“Milk is an essential part of our students’ school lunches and the lifeblood of our Upstate NY agricultural economy, but with a national milk carton shortage looming, now is the time for the USDA to step up and ensure our farmers get more support to continue their vital work.” That is why I am urging the USDA to begin working with industry leaders to address the nationwide shortfall and offer all of the leadership and technical assistance required to assist our New York dairy farmers,” said Senator Schumer. “The USDA is uniquely positioned to investigate this problem from a national level and work with the dairy industry, our farmers, and schools to mitigate the impacts of shortages and propose solutions.”
“Given the potential downstream impacts of disruptions to the milk packaging supply chain we also need the USDA to investigate the causes of this carton shortage to determine how we can avoid further disruptions to our dairy farmers and any further steps we can be taking to mitigate problems of this nature in the future,” Schumer said in a statement.
Outside of new relationships, here’s how school milk processors are faring, according to Herrick.
- At least one processor with surplus carton stock has distributed part of it to another processor to help them get through any hard spots.
- Processors are also offering fewer SKUs—primarily 1% white, 1% chocolate, and skim chocolate—which helps packaging businesses and processors meet short-term demand.
- Processors are also collaborating with schools to provide half-gallons, gallons, and other quantities to ensure milk is available on the tray when half-pint carton supplies are renewed.
- Some schools provide shelf-stable (aseptic) milk.
- Some schools have bulk milk dispensers installed.
- Some schools are providing more juice and water in addition to milk; others are providing only juice and water, which is not optimal for child nutrition, and we are pushing processors and schools to find methods to maintain milk on the tray.
Offering alternative milk types and container sizes is allowed because the USDA has given all schools emergency authority to do so, similar to the scenario under COVID, according to Herrick. “USDA issued a memo almost three weeks ago reminding states and local schools that they can serve different varieties of milk as well as different container sizes to fulfill the milk requirement in school meals using their emergency authorities, should they need to.”
As an example, the Upstate Niagara Cooperative provides half-gallons of milk to schools as an alternative. “Our 260 dairy farm families are encouraged by our team’s efforts to continue supplying our milk to our school customers,” stated John T. Gould, president and chairman of Upstate Niagara Cooperative. “It took a lot of effort, coordination, and cooperation to meet their needs.” Senator Schumer’s support in acknowledging the crucial necessity of milk in the nutritional needs of children and adults is much appreciated. We appreciate his efforts and attention in resolving this packaging quandary as soon as possible.”
Herrick maintained that milk supplies are plenty across the country, and Schumer stated, “There is no shortage of milk.” “This is not a problem for dairy farmers.” This is not a problem with the milk processor. This is not a school-related issue. “It’s a packaging problem,” Herrick said. “That is why we are urging schools to do everything possible to ensure that milk is available for all students.” No child should go hungry.”
