September 15, 2004

Milk Price Hike Worries In Hawaii

A Hawaiian state agriculture specialist says that consumer prices could go up, now that Foremost Dairies is closing down, leaving Meadow Gold with a milk-producing monopoly.

"It would be necessary for them not to take this point and raise prices just for the sake of being the only game in town," said Steve Dulce, who monitors prices for the State Agriculture Department's milk control section.

One grocery retailer said he expects locally produced milk prices to remain the same for at least a year because everyone will be watching. But after that, he is certain they will increase.

Local retailers say if locally manufactured milk gets too costly, the only safety valve they have is to go to the mainland to pick up more of their milk product.

Meadow Gold revealed that it plans to do everything it can to meet the needs of Hawaii's milk consumers. It also does not see milk prices going up.