April 22, 2004

US Milk Prices Forecast To Peak In A Few Months

A Purdue University agriculture expert says milk prices should peak in a few months. And by the end of the summer, the rates should go back to normal.

Dairy farmers have warned consumers that prices could soon rise to three dollars for a gallon of milk.

Purdue's Chris Hurt says much has changed since the National Milk Producers' Federation offered incentives to dairy farmers who produced less milk last April.

Times were difficult for dairy farmers when their costs were going up and milk prices were down.

Reports of possible mad cow disease in Canada also stopped the sale of affordable replacement heifers that traditionally came from Canadian stock.

Hurt says he has already seen an increase in milk prices in places where he shops, and a bigger hike would come soon.