July 2, 2008

US milk prices moved up as much as 11 percent on Tuesday (July 1, 2008) due to soaring costs and last month's flooding in the Midwest.
 

Rising costs have been attributed to the price of fuel, plastic and ethanol. The Midwest flood has also impact corn crops and livestock. In New York alone, milk prices have increased by 44 cents.

Milk now cost an average of US$4.37 per gallon, up 77 percent in the past two months, according to consumer groups.

The milk price record was set last August, when prices went up to US$4.54 per gallon. However, experts project that this record would be broken by August 1, 2008.