August 24, 2004

Milk Prices Falling In The US

The National Milk Producers Federation reports that the price US farmers receive for their milk fell 56 cents per gallon this summer.

But prices have not dropped as much at the grocery store. Retail milk prices fell about three cents a gallon last month.

Prices went up partly because of higher feed costs. Many farms have also not been able to survive on the low prices from 2001 to 2003, thereby shutting down or cutting back production. The tightened supply drove up prices.

Production has increased, but demand has remained relatively unchanged. This has caused prices to fall again.