Why is milk so expensive?

July 28, 2008 – 2:41 am – No Comment

Here’s a question I’ve been asking myself recently…why IS milk so expensive? Last year it seems like it was 2.50, two years ago it was around 2.00 for a gallon. If I remember right, gas stations would often offer milk for 2 (gallons) for $4. Then it was 2/$5. Now it’s 2/$7 in some places, some are more. I bought a gallon of milk from Wal-Mart on Thursday, it was $3.44 and it’s skim milk.

So, what’s going on with milk?

Well, it looks like oil prices have a serious effect on everything. However, oil prices should effect every aspect of grocery store prices and not just milk alone. Milk’s price has inflated higher than many other grocery store items. The only items I can compare are eggs and other diary products.

Another culprit is the growing demand from China. China is becoming more modernized and they are beginning to take advantage of the same luxuries Americans have. Also, they, and other countries, are buying our commodities. Our dollar is also at a low and other countries can get our products cheaper than in the past.