Expect the price of raw milk to go up 40 cents a gallon by summer.
Cows eat alfalfa and grains. The price of alfalfa goes up because farmers are growing more corn as the demand for corn for ethanol plants coming online increases. Add to this increasing energy costs for dairy producers and a reduction in milk production over the past few years because of slim profit margins for dairy farmers; with a strong global demand for U.S dairy products.
Milk prices have been creeping up since the beginning of the year and farmers nationwide plan to plant more corn this year. Strong international demand for U.S. dairy ingredients, coupled with climbing corn and soybean prices, has caused milk prices to reach record highs recently, according to the International Dairy Foods Association (IDFA)
A dollar a week for milk doesn't mean much to a commodity trader cashing in on the hot new wave of food/fuel commodity based trading, a politician making six digits, or a CEO making $25 million. However, for a single mother on a tight budget, it’s far easier not to drive as much when gas prices go up than it is to stop eating.
Previous greenmesh posts voicing concern about producing bio-fuels from food stock.
very good post, i was really searching for this topic as i wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand
thank you for sharing this.
Regard
Commodity Market