April 27, 2004

Retail Price For US Milk Nears $4 Per Gallon
 

An increase in the base price of milk is pushing the retail price of the staple to nearly $4 per gallon. This has caused some consumers to cut back, switch brands or seek out wholesalers.

The rise in prices comes after the U.S. Agriculture Department announced on Friday that it would raise the minimum price paid to dairy farmers by 50 cents - taking the price to a record high of $1.69 per gallon. That did not include packaging, distribution and other costs.

As a result, the retail price per gallon of milk is set to reach more than $4 per gallon - the highest levels recorded - in some areas, with prices not adjusted for inflation.