Milk Prices in the U.S. Hit Record High

Price Of Milk Rises

For many Americans, milk is a popular staple in their daily diet. In fact, America is among only a few places in the world where people consume milk as a beverage into adulthood.  Though milk is often consumed as a beverage it is also a necessary ingredient in many other popular food items such as cookies and cakes. While most people can’t make a trip to the grocery store without picking up a carton of milk, all of that may change.  According to recent reports, the price of milk has reached an all time high which could result in higher prices for other food items in which milk is a necessary ingredient. Milk futures for this month are up 0.7 percent translating to nearly $25 per 100 pounds and, according to the Bureau of Labor Statistics,  milk was $3.65 a gallon in July, which is the highest price for the month since 2011.

Ruben Villareal, manager at a Fresh Food Depot in Michigan, says that his store is losing “about $100 a week” as a result of the rise in milk prices.  Villareal says that this has forced the store to raise the prices on other items to make up for what they are losing in milk sales.    Alan Levitt, a spokesman for the U.S. Dairy Export Council has noticed that U.S. milk exports are also on the rise while inventories of dairy products are decreasing. The rising price of milk and low inventory numbers may also be an issue as dairy consumption in the U.S. tends to rise during the fall season.

Joseph Spainhour, a partner at Rice Diary LLC, believes that dairy imports will increase as a result of rising prices in the U.S. noting, “Usually, we use the first six months of the year to build the inventory we’re going to sell in the last six months.” However, “People are saying that ‘I know those imports are coming in, but in the meantime, I’ve got to make sure I’ve got enough to get on the supermarket shelf.”

While many U.S. consumers will continue to purchase milk and other dairy products, the growing prices may cause a real issue for those who are already living on a tight budget.

(Photo by Joe Raedle/Getty Images)

Written by Camille Moore

Camille has a master's degree from Saint Joseph University's Writing Studies program, and she currently works as the Writing Center Assistant Director at a small university in western Pennsylvania. Camille's writing has been published on several websites, and she enjoys writing articles and short stories in her spare time. You can follow Camille on Twitter @CamealAshley.