Jul 10, 2007 8:45 am US/Eastern
Milk Prices Soar
At Many Stores, A Gallon Of Milk Tops $4
MINNEAPOLIS, Minn. (CBS) ―
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Experts say a perfect storm of market pressures is conspiring to push dairy prices up. (File)
CBS4
The price of milk is going up. At many grocery stores it is above $4 and some experts believe $5 isn't out of the question by the end of the summer.
Experts say a perfect storm of market pressures is conspiring to push prices up.
Last year a record number of dairy farms folded because milk prices were so low, leaving fewer cows to meet demand. A drought in Australia means Asia now relies more on the United States for milk products. The price of fuel is also adding to costs.
There is also the corn factor. The price of corn feed for dairy cows is up in part because of the demand for corn based ethanol.
However, consumers WCCO-TV spoke with say they will continue to buy no matter what the price. Nancy Hope said she will continue to buy three gallons of milk for her family no matter what the price.
Twenty years ago consumers paid about $4.13 and 10 years ago milk cost just under $4. So compared to previous years these numbers aren't unusual.
As for comparing to other areas across the country, Minnesota is in the middle for the cost of milk. Places like Phoenix and Washington, D.C. pay more because there are fewer dairy operations nearby.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
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