The closure of big distributors such as restaurants means that big orders get cancelled. These cancelations cause a glut at the point of production.
However, the article fails to mention the role that agricultural subsidies play in the oversupply. Regarding dairy in particular, consider:
> "... in 2015, the support granted to U.S dairy producers represented approximately C$35.02/hectolitre - the equivalent of 73% of the farmers' marketplace revenue. USDA data also reveals that US dairy farmers operate at a loss, and have a cost of production that is higher than what they earn from the marketplace."
However, the article fails to mention the role that agricultural subsidies play in the oversupply. Regarding dairy in particular, consider:
> "... in 2015, the support granted to U.S dairy producers represented approximately C$35.02/hectolitre - the equivalent of 73% of the farmers' marketplace revenue. USDA data also reveals that US dairy farmers operate at a loss, and have a cost of production that is higher than what they earn from the marketplace."
https://markets.businessinsider.com/news/stocks/american-dai...
This has been happening for decades, leading to artificially suppressed food prices and market distortions across many categories.