Gasoline and cereal grain prices aren't the only things that are on-the-rise. Milk prices are skyrocketing too! Already up 30% in 2007 (~45% since last November), milk prices are expected to continue rising well into 2008. Reasons for the sharp rise in demand for milk? There are many actually. There is a stronger than anticipated demand both in the US and abroad. A drought in Australia, a major dairy producing country, has greatly diminished the supply of milk. some countries have also raised export tariffs on milk and dairy products and/or suspended exports entirely to limit market supplies.

THE BIGGER PICTURE: Milk is a household staple and its components are used in everything from infant formulas to cheeses and potato chip seasonings. Milk is also the origin of some of the best protein sources available: whey and casein. Consequently, as milk prices escalate, so too do the ingredients that go into making the milk (e.g., the grains that the cows eat) and all the by-products from milk (cheese, yogurt, powdered proteins, cottage cheese, etc.). Hopefully things level out soon, because unlike gasoline, athletes can't carpool, take public transportation, or walk to get protein.
Leave a Comment
Jul 06, 2007
I jsut went to the grocery store and almost fell over when I went to pick up 2 gallons on milk..After seeing the price I only purchased 1 and told my children we are going to have to limit our milk intake .. $4.38 a gallon I could remember maybe 6 months ago paying $2.99 ... This is just as bad as gas prices ... what is happening here is because of higher gas prices..I know we are going to have to limit our intake of cheese because if milk is going up I know cheese is next to go up..