Milk Prices Increase With Growing Demand

US - Got milk? Chances are, you're paying more for it than you did a year or even six months ago.
calendar icon 24 October 2007
clock icon 2 minute read
Some farmers are planting grasses to pasture their cattle in an effort to keep feed prices down.

Milk prices are rising worldwide, and local dairy farmers are trying to keep up with the growing demand.

Milk prices hit a record high in July, with prices averaging $3.80 per gallon, compared to $3.29 in January.


Milk prices increased internationally more than 46 percent between November 2006, and April 2007, and the biggest growth came in China.

Dairy farmers in the United States are trying to keep up with the demand, but simple economic principles don't apply the same way in dairy farming as they do in other industries.

If corn or wheat is in higher demand, farmers plant more in the spring, harvest more in the fall, and increase the supply to keep pace with the demand. For milk, the process takes almost five times as long. Heifers - female cows that have not calved - need about 15 months to mature to the point of being impregnated, and from there, the gestational period is another nine to 10 months.


Milk prices are on the increase because the basic ingredients are more expensive, explained Robert Grove, a local dairy farmer

“Milk prices are going up because of ethanol and the world market. There is a tremendous demand for whey and powdered milk. Whey is used as a base for baby food, among other things,” he explained.

Source: Waynesboro Record Herald

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