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Sunday, 08 July 2007 23:44

Dairy Prices Soar

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slide35Just one year ago, dairy prices were considered to be in a slump with California's lowest retail price for milk at about $2 a gallon. This benefited consumers but left many dairy farmers with a lot of red ink. In fact, according to dairy industry officials, last year saw more than 90 California dairies going out of business as a result of the low prices. It’s a new year and now dairy prices have rebounded and advanced with hitting a record retail minimum of $3.10 a gallon for low-fat milk this month - and experts predict it should remain high on Tuesday when the state sets allowable prices for August.

Many consumers may already be paying more that $3.10 a gallon, said Steve Lyle, public affairs director for the California Department of Food and Agriculture, which sets a price floor - called the lowest observed retail price - for milk. Lyle states "The caveat, though, is the lowest observed may bear no relation to what you pay at the store. For the most part, you're going to pay more than that," he said. Lyle says "That's the price at which a retailer cannot sell below because that's basically the cost of a gallon of milk."

The Stockton Record Contributed to this Story. 

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