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11
JAN

Dairy Prices Keep Rising

Filed Under: Announcements & News at 1:13 pm | By: Susan Coyle, Senior Editor
Dairy CowsIn July, the Lucky Blog explained a few of the reasons for the increased price of dairy products.  You were told that the items you loved from milk to cheese to whey protein would put a little more of a dent in your wallet than they already were. It was depressing news, and sadly it’s going to stay that way.

The past 12 months have seen nothing but price hikes. Droughts in Australia have and continue to weaken Oceania’s agricultural output while the suspension of EU dairy export subsidies hinders Europe’s dairy trade. On both ends, positive changes are hoped for but doubtful to occur anytime soon.  The little rain that does fall on Australia’s fields is quickly depleted by the parched soil. Adjustments to Europe’s policies are being considered but remain largely theoretical, and Eastern Europe is experiencing a lull in production as well as buyer interest. Moreover, the demand both for milk ingredients and protein, as well as corn and soybeans continues to grow. Customers, like you, are discovering the numerous benefits of dairy as fuel manufacturers discover corn and soybean’s diverse capabilities (i.e. their usefulness in the production of biofuel). Thus, production costs are rising in conjunction with demand, which means you, as the buyer, have to compensate. And trust me; you have.

The retail price for 2% milk has increased by 23 percent (about a $.72 difference), and the cost of whole milk powder has gone up by 93 percent. Since the future looks stagnant, it seems you’ll have to cope with these price hikes for quite a bit longer. But, take heart; you can always compensate for the cost by cutting back on un-necessaries, such as overly processed, fat-filled junk foods. They’re defeating the point of your health-conscious dairy purchase anyway.

Further Reading: CME Daily Dairy Report
                         Cheese Reporter

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One Response to “Dairy Prices Keep Rising”

  1. Eric says:

    But it’s still cheaper than gas in Connecticut..

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