Retail milk prices to rise 50 cents

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

Consumers will soon pay more for a gallon of milk in the grocery store. By next month, the retail price for a gallon of milk will increase by about 50 cents, says Ed Jesse, dairy economist at the University of Wisconsin.

Retail milk prices have already begun to creep higher. Between March 1 and April 1, the average price for a gallon of milk in the U.S. increased 15 cents per gallon — from $2.85 to $3 per gallon, says Jesse.

The retail price spike is not limited to fluid milk. The USDA also predicts a 4-percent to 6-percent increase in retail prices for all dairy products this year.

“In the last couple of years, the increase has been 1 percent to 2 percent a year, so this is significant,” says Annette Clauson, an economist with the USDA’s Economic Research Service.

The hike in retail prices comes in response to a continued shortage of milk, which is being fueled by several factors, including high feed cost, a reduced supply of Posilac and high replacement-heifer prices.

“It’s almost a perfect storm of factors, any one of which wouldn’t have much of an impact, but together have kept a heavy lid on production,” says Chris Galen, a spokesman for the National Milk Producers Federation.

However, higher prices won’t last forever. Dairy producers typically ramp up milk production in response to favorable farm-gate milk prices. That should start sending prices downward, says Jesse. “The question is when and how badly,” he adds. “The hope is they will slide down gradually.”

Associated Press



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Case IH DC3 Series Mower Conditioners

DC133 (13’ cut width, 8 discs) and DC163 (16’ cut width, 10 discs).125” conditioning width – best in class. Flail, ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Leads to Insight