We got the milk, but where's the carton? Dairy farmers face an unexpected dilemma.

The USDA requires milk offerings at
breakfast and lunch. (American Dairy photo)

America's dairy industry has a new problem -- not enough 4 oz. cartons to put the milk in before shipping it to "care homes, hospitals, prisons, cruise ships and schools," reports The Economist. "School districts are scrambling." The Department of Agriculture "requires milk to be offered at school during breakfast and lunch. . . . For some pupils, school is the only place they receive dairy food. Districts are reimbursed for each half-pint of milk offered to pupils at low or no cost. Milk can arrive in schools as quickly as 72 hours after leaving the farm."

How did this happen? Dairy supplier Cream-O-Land and other dairy suppliers source their cartons from Pactiv Evergreen. The company "blames higher-than-usual demand. Dairies use the summer to stock up. This supposedly did not happen this year," The Economist reports. "Dairies disagree, seeing no changes in demand or inventory. Other packaging firms are busy because Pactiv Evergreen's customers are begging for cartons."

Because schools and other businesses are required to serve milk, the USDA and many states relaxed some of their requirements. "Schools can now serve milk out of jugs. Districts are stocking up on cups and lids. Some schools are offering juice," The Economist adds. "To fix things, Pactiv Evergreen says it has upped its output. It has also resurrected a defunct generic brand and will use its design for all cartons, rather than interrupting the line to change logos. This should speed production and increase capacity by 10%. Shipments are expected to begin in early December."

Meanwhile, the U.S. dairy industry is already facing declining sales due to competition from plant-based "milks." Not having enough cartons was yet another challenge. Danielle Wiener-Bronner of CNN reports, "To help ease the burden on schools — and dissuade them from turning to non-milk alternatives — the American Dairy Association North East issued tips to dairy suppliers, suggesting that they offer to help pour milk themselves, donate cups or spearhead a cup donation drive, among other solutions."