Milk Does a Body Good - What About the Wallet?

Just about everybody drinks milk, eats cheese or consumes some sort of dairy product on a daily basis. Children in school purchase milk with breakfast and lunch, and just about everyone enjoys the classic glass of milk with that plate of freshly baked cookies. Lately though, not everyone is enjoying the prices of milk. Purchasing milk as become as big of a dreaded thing to do as purchasing gas for your car. You don't want to but it's necessary, and while we're putting down as much as $4 to $6 dollars down on each gallon of milk we buy, do we ever wonder why the prices of gotten higher?

It seems we have many factors to thank for this new hit to our pocket book. Along with the high fuel prices, there have been numerous droughts and a price hike in the cost of feed (probably due to the drought) make the price increase quite notable. According to records we have all been enjoying relatively modest milk prices over the last few years. and while the USDA predicts that milk production this year will grow, the demand for that frothy white drink far exceeds that production. The demand for milk is high world wide, while Europe and Austrailia also have a milk shortage.

The higher milk prices really hit the families who depend on it. For alot of those families who work on a strict budget, milk is a ready staple and it can not be left out of the shopping list. So in order to compensate for the much needed gallon, some families cut back on other expenses or simply cut back on other foods going from name brand to store brand in many cases.

Families aren't the only ones being hit hard by this increase. Many businesses blame the recent increase in the price of dairy products on their own reason for raising their prices. Places that use dairy on a daily basis such as Coffee shops and Pizza parlors, as well as ice cream and cheese producers. Everyone it seems is taking notice. And while schools are required to have milk as part of federaly funded meal programs it seems that everyone is going to have to adapt.

The prices of milk it also seems reverts back to the cattle feed. In an economy where everyone is screaming for a better fuel the demand for corn-based ethanol fuel is high. The increase for demand of corn pushes up cattle prices which then trickles down and increases the price of milk. So while farmers are being paid more for their milk, they are being forced to buy more expensive feed for their diary cows. The recent droughts aren't helping this problem either.

So when will we see relief in this quarter? No one readily knows. There has been alot of speculation but no one can really give a good answer. So unless mother nature gives us all a break on her end and the natural way of things is restored so that feed prices go down which in turn will make the milk prices go down, it seems like we might be stuck for awhile. Unless of course you don't drink milk or eat dairy at all. Then I think your safe from this wallet eating monstrosity.