by 
Jackeroo
ANSWERS: 7
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The explanation I have heard (given by our local grocery chain) is that it is partly due to increased costs of transportation and distribution, but mostly due to Ethanol production. Apparently, the type of corn used for dairy cow feed is what is being used for the Ethanol. That makes it harder for the dairy farmers to get, and drives the price of the commodity (feed corn) up, thereby increasing the dairy farmers' cost to supply milk. That makes sense to me, but I don't know how much truth there is to it. I'll be interested in reading what others have found out.
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The cows have got a new marketing company.
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Because dairy farmers have been robbed for years now. It's about time they are paid a fair rate for the products they produce. The government has kept the prices paid to farmers low and kept a high tax on the products. Also the processing plants got to pay low prices for what they got from farmers and then jacked up prices on their end for higher profits.
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Those cows are "mad" and are demanding a raise !
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Gas prices. Everything seems to be interlinked to gas prices. Trucks need to transport the milk from the farms which cost gas, and with the rising gas costs trucks drivers want more for their time. So, milk prices have been going up. I have seen a gallon of milk for $5.25
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Fuel and corn costs are rising, as are the costs of certain antibiotics and other animal medications. Fuel is needed to transport the milk and the corn is needed to feed the dairy cattle, so the dairy farmer is experiencing a rise in operating expenses and must raise milk prices to balance and maintain a small controlled profit.
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I tend to think differently - My guess as to why gas, energy and inevitably milk prices all are going up is because the dollar is going down. The word 'Inflation' is often used to describe an increase in prices, but a more accurate definition is an increase in the money supply. The more dollars there are, the less each one is worth - that's what gives money it's value, how many dollars are in circulation. The Federal Reserve prints hundreds of billions each week in new currency, therefore the dollar loses it's purchasing power gradually over time. The net result is higher prices across the board.
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