Dairy prices have been steadily increasing all year, and now they are approaching record levels. KSMU's Greg Leuthen has more on the causes of the price increases.
In June 2004, the price of the average gallon of milk was $3.57, a record high. According to KSMU's informal survey of three grocery stores in central Springfield, the current average price for a gallon of milk is $3.55.
Missouri has already reached a record high for the uniform price of 3.5% whole milk, an 11% increase over just the past month, and a 65% increase since last June.
Tony Rickard is a Dairy Specialist for the Southwest Region of the University of Missouri Extension. He says that an increase in one dairy product usually drives up the others.
Rickard says that there are other factors driving up the dairy prices as well. One of those reasons is the high prices of corn and soybeans used to feed the cattle. Corn prices have increased due to its use in the production of ethanol fuel, and Rickard says soybeans are at record high prices this year. Another cause comes from overseas.
Rickard says that milk prices per gallon have increased between 80 cents and a dollar over the past year and is unsure of when the prices will go back down, but he says it probably won't be until at least next year.