Milk Prices Plummeting
Overproduction of milk in the U.S. is dropping prices at grocery stores, including Jefferson City's Hy-Vee.
"We've seen milk decrease in the past three months, anywhere from 15-25 cents per gallon," said Rod Dolph, Hy-Vee store director.
The U.S. Department of Agriculture reported a steady rise in milk production over the past eight years, increasing the nation's supply while decreasing prices.
But, not everyone is pleased to pay less.
"It's good for the consumers but not for the farmer because you need a profit to make a living," said Norma Farley.
University of Missouri research showed dairy farmers lost nearly $7 for each 100 pounds of milk they sold in the past two years.
Despite lower prices, Dolph said Hy-Vee customers have not been buying more milk.
"Milk is a necessity just like gas," he said. "They buy it whether it is high or low."
Hy-Vee suppliers anticipate milk prices will stay about the same for the next six months. Cheese production is aso up, but Hy-Vee has not seen a drop in cheese prices and does not anticipate one in the near future.