The U.S. Department of Health and Human Services (HHS) said May 10 it is paying dairy farmers $28,000 apiece to contain avian flu. The allocation happens nearly a month since the discovery of avian flu in dairy products in mid-April, 2024.

The Food and Drug Administration (FDA) alongside the U.S. Centers for Disease Control and Prevention (CDC) have allocated a total of $200 million.

President Joe Biden’s administration made the financing commitment through the three agencies after 20% of retail milk samples tested positive. Some 112 out of 905 cows that received tests for avian flu apparently returned positive results.

Out of this kitty, CDC will  use $34 million for tests, $8 million on vaccines and $3 million to monitor fluid waste. 

HHS in its part will use $101 million to trace and monitor human exposure to infected cattle. It will also use the funds to research on possible virus mutations.

FDA will utilize $8 million to keep retail milk safe and solidify its April report that pasteurization eradicated the virus.

In a press call on May 10, Agriculture Secretary Tom Vilsack said that currently the milk and beef supply chain elicits “no concern.” 

Four-Month Roll Out

The funding duration will last four months, during which the U.S. Department of Agriculture (USDA) will allocate $98 million to affected dairy farms. According to Vilsack, this will equate to $28,000 per recipient.

The four-month window is an extended testing period that takes into account the fact that there has been no precedent. 

Indeed, Doctor Keith Poulsen of the Wisconsin Veterinary Diagnostic Laboratory told reporters that the issue would not “get fixed tomorrow.” 

He added that continuous monitoring offers forward insights of what to do in case of a future outbreak. 

The biggest beneficiaries will be small-scale ranches that can easily test and cull their herds using the financial kitty. Large-scale farms are also benefiting but Poulsen says that they could lose up to $3 million after an outbreak. 

Milk Prices Steady

Owing to the swift action of the feds to ensure milk safety, the prices of dairy in the U.S. remain steady.

On May 12, the  wholesale price of milk per gallon (cwt) stood at $18.65, equal to $0.42 per liter.

Comparatively, the market price for milk per gallon had hovered between $18.32 and $18.72 on May 8 and 10 respectively. 

Thus, as the federal authorities combat avian flu on dairy products through massive funding, the U.S.’ milk market remains strong.