Food CPI potentially good news for dairy farmers

The government predicts that dairy product prices will fall 4.5 percent to 5.5 percent this year compared to 2008.

That is potentially good news for dairy producers. The prices received by farmers for their milk is down approximately 40 percent this year compared to last year, and many have questioned why there hasn't been a proportional decrease in dairy product prices at the grocery store. Lower retail prices will presumably stimulate sales.

Click here to see the Food Consumer Price Index report by the USDA's Economic Research Service.

Source: USDA

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