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UNIT. THEY CLAIM THE ACQUISITION WOULD HURT CONSUMERS. THOSE ARE YOUR STORIES THIS HOUR. AMERICA HAS GOT MILK. TOO MUCH OF IT . THE U.S. IS PRODUCING A RECORD AMOUNT OF MILK AND DUMPING THE REST BECAUSE THEY CANNOT FIND ENOUGH BUYERS. YOU CAN SEE IT HERE. MILK OUTPUT IS SET TO BE THE HIGHEST FOR A FIFTH STRAIGHT YEAR. MILK PRICES ARE LOWER THAN EVER, DOWN 39% THIS YEAR. FARMERS ARE NOT HURT AS MUCH AS YOU WOULD THINK. PIMM FOX JOINS ME NOW. WHO IS CRYING OVER SPILT MILK? PIMM : THE FARMERS ARE ACTUALLY MAKING MONEY EVEN THOUGH THE PRICE IS DOWN OVER A YEAR-AND-A-HALF. I WOULD SAY A BIG HARVEST, YOU HAVE GOT TO UNDERSTAND THE GEOGRAPHY OF ALL OF THIS ARE THE NORTHEAST EGG MILK REDUCER AND AT ONE TIME THERE WAS A THOUGHT THERE WOULD BE A HUGE DEMAND FOR CHEESE AND MILK PRODUCTS , IT IS HAPPENING BUT IT IS HAPPENING A LOT MORE AND A LOT MORE PROFITABLY WHEN THE DOLLAR WAS LESS STRONG AGAINST FOREIGN CURRENCIES. YOU HAVE GOT A CURRENCY HIT WEIGHING ON THE HUGE SUPPLY OF MILK YOU JUST -- AVAILABLE FOR ALL THESE HERDS, THAT IS MAKING IT POSSIBLE YOU HAVE GOT PERHAPS MARKETS IN CALIFORNIA BECAUSE OF THE DRY CONDITIONS, FARMERS IN THE EAST WOULD PRODUCE MORE MILK THERE. THEY ALL WENT AHEAD AND DID THE SPIRIT WHAT HAPPENS WHEN YOU HAVE TOO MUCH SUPPLY AND NOT ENOUGH DEMAND? YOU END UP WITH A SITUATION LIKE THIS. OLIVIA: THOSE ARE UP CLOSE AND PERSONAL UDDER SHOTS. PIMM: WHAT ARE YOU GOING TO DO, ASK THE TOWN NOT TO PRODUCE THE MILK? THEY ADDED TO THE HEARD AND THE IDEA WAS A BIG DEMAND FOR IT. THE CHANGE IN CURRENCY VALUES. YOU CANNOT GET, IT KEPT FRESH, SO WE HAVE GOT TO DUMP IT. OLIVIA: PLUS THE ISSUE OF PERISHABLE. YOU CANNOT JUST PUT IT IN A WAREHOUSE BECAUSE IT WILL GO SOUR IN A COUPLE OF DAYS. PIMM: REMEMBER THE BIG CHEESE MOUNTAIN EUROPE HAD FOR A LONG TIME? THEY ENDED UP HAVING TO STORE IT. THE FACT IS THE FARMERS TOOK ADVANTAGE OF WHAT THEY SAW AS HIGH MILK PRICES. YOU LOOK TO THE FUTURE, WE ARE SEEING PRICES WERE HIGH. THEY SAID GREAT, WE BOTH AND THE HERDS, PERU'S MORE MILK. -- PRODUCE MORE MILK. OLIVIA: I REMEMBER IN DENMARK.