Milk Prices Moving Ahead - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

06.01.07

Milk Prices Moving Ahead

As gas prices continue to rise, The cost of an everyday item you have in your fridge is also climbing, with no sign of coming down.

Newschannel10's Tina Berasley explains why a gallon of milk is costing you more.

Just like buying gas for your car, buying milk is a necessary part of life for 98 percent of families nationwide, and as it turns out, the two are connected. 

Portia Stevens is a mother of three who's kids can't get enough milk.
She says "I buy milk at least 3 times a week, every other day, every two days...so we just get the cheapest one to make sure we got it".

And she's not the only customer groaning at the grocery store. United Supermarkets tells us they have had to raise the average price of every gallon of milk by seven percent in the past six months.

The reason? A gallon of Plains Dairy milk made here in Amarillo cost the company 20 percent more to buy from farmers than it did just six months ago. Those farmers are charging more because they are facing the high price of cattle feed when buying corn, and also the cost of getting the raw milk to the middle man. 

Greg Meador of Plains Dairy said "We all know the gas for transportation...well its effecting him in both ways not just in terms of his delivering products and services but also shipping the product to us and shipping it to the warehouses"

The company is trying to keep the cost to the grocery store as low as they can, and are hopeful things will change before the prices climb even higher.
Meador added "The solution hopefully is as we get more grain available to farmers could bring up more cow production and we could bring back down the cost of raw milk."

The U.S. Department of Agriculture predicts a gallon of milk will reach an average of 3.78 nationwide this summer, still cheaper than a gallon from the Plains dairy, which right now will cost you 3.89 at United. 

   

Powered by Frankly