We could be spending record amounts for gasoline this summer…..to go to the grocery store and pay record prices for milk.
The Food and Agricultural Policy Research Institute in Columbia forecasts milk prices about fifty percent higher than they are now in August. That would put milk at about $4.50 a gallon. The average price for milk last month was about $3.10 a gallon. Figures for June have not been calculated yet. The record high was set three years ago at $3.54.
FAPRI’s director of livestock and dairy, Doctor Scott Brown, says strong global demand for United States dairy products is behind the jump. He says the depreciation of the dollar against other world currencies has made United States milk more affordable overseas. Brown also says several countries have seen strong income growth and growing populations. All of those are considered factors.
He says higher fuel prices also are a factor but only a small one.
Brown thinks prices will drop back to something like they are now but not until near the end of the year.
He says it hasn’t been all that long ago that we were seeing record LOW prices.