White Gold: Milk Prices At New High

Growing appetites for dairy in Asia and limited worldwide supply are among a number of factors driving prices of the dairy drink to record highs.

In China, milk consumption has soared along with rising incomes, a massive expansion of the dairy industry and the increasing familiarity with -- and taste for -- non-native foods among young urbanites. Chains such as McDonald's, Starbucks and Pizza Hut are introducing cheeseburgers, cheese pizza and lattes to a new audience.

Rising costs of animal feed, shrinking European production and long-standing drought in Australia and New Zealand, the world's largest milk-exporting region, are also pushing up the price.

Paying more for milk is causing an uproar in Germany, where families consider providing children with an affordable glass of milk a fundamental right. It is also a concern for consumers in the United States and elsewhere in Europe.

Milk prices hit a record last month in the United States, where consumers paid an average $3.80 a gallon, compared to $3.29 in January, according to the U.S. Department of Agriculture. It forecasts prices will remain high throughout the year.

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