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Price Of Dairy Products On The Rise

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Jul 3, 2007 6:00 am US/Eastern

Price Of Dairy Products On The Rise

Higher Costs Linked To Rising Demand For Ethanol

SAN FRANCISCO (CBS) ― Consumers are paying more for dairy products this summer because of high demand, higher costs of transporting milk to market, and increased demand for corn to produce ethanol.

U.S. retail milk prices have increased about 3 percent, or roughly a dime a gallon, this year, according to the U.S. Department of Agriculture. A University of Illinois dairy specialist forecasts further increases of up to 40 cents a gallon for milk over the next few months, and up to 60 cents for a pound of cheese.

Higher gasoline prices have increased the costs of moving milk from farm to market, and corn – the primary feed for dairy cattle – is being gobbled up by producers of the fuel-additive ethanol. The demand for milk protein is also in high demand throughout Asia.

(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)

© MMIX, CBS Corporation. All Rights Reserved.