You might be paying more for milk soon. A number of analysts are suggesting that possibility including a Cornell University Professor of Agriculture and Life Sciences, Andrew Novakovic.
He says a big reason for the expected increase is an increase in demand, particularly from China and other emerging markets.
“Local conditions in the U.S. make a difference around the periphery but what we’re seeing on a global scale is demand is running ahead of supply and just dragging prices up. “
Novakovic says the price of a gallon of milk may rise about 20 cents in the next couple of months. He says the milk price may decline later in the year, but he notes that the price has fluctuated a lot in recent years, and it is also possible milk could rise beyond that 20 cent a gallon increase.
Even if consumers are not thrilled by this news, farmers may be happier. Novakovic says they have seen lower prices for their milk in recent years..
“This is kind of payback time for dairy farmers who were brutalized with high feed costs in the early part of the corn-for-ethanol boom .“
Novakovic also notes that some retailers will continue to discount some of their milk products, so the final impact to consumers may not be that great.