November 07, 2024
Business

Even as cost of milk rises, it’s still a bargain

Times have changed. This baby boomer remembers the summer of 1964, when a gallon of unpasteurized milk straight from the tank at Mower’s farm on the Pushaw Road in Bangor sold for around 50 cents (bring your own clean container). Random barnyard customers of that time squawked that the price was too high.

Today, with Maine supermarkets charging as much, or more, than $4.25 a gallon, and the reality that we may soon see $5 for a gallon of milk, it is fair to ask, “What gives?” Young Maine families with children are particularly stressed in providing the essential white fluid to their youngsters.

There are many reasons for the huge hikes in prices. First, costs to the dairy farmer have gone way up. Higher gasoline and other fuel prices mean the price of milk must increase. Corn that used to be sold as animal feed is now being diverted to the manufacture of ethanol. Longstanding droughts in Australia and New Zealand, traditional exporters of milk, have resulted in a dried-up supply. The Chinese and other developing nations have determined that milk is a great addition to their diet and are driving up the demand considerably.

Imports to these countries of nonfat milk powder and whey powder have resulted in short supply in America. Demand for milk this year is up 2.9 percent, but supply has increased only 1.1 percent. This is not just a Maine challenge, but a global one.

Higher milk prices mean that milk-based products such as cheese, ice cream, pizza (mozzarella cheese), yogurt and milk chocolate are going up in price.

New federal regulations have resulted in farmers being paid an additional $10 per hundredweight, again driving retail prices up.

The Maine dairy farmer is deserving of every nickel he receives. Dairy farmers work long and hard, day in, day out, year in, year out, for generations.

What is a consumer to do? Milk is an important component for developing children and expectant mothers.

Consider purchasing milk in clear containers so the food police in your home can regulate excessive usage. There is little more frustrating than reaching for the milk and finding the container is empty or reduced to a solitary drop at the bottom. Check with your family pediatrician, dietitian, WIC program, or other source to assure proper diet.

For adults, perhaps reducing some milk consumption consistently is a good idea. Again, check with the professionals. Using a 10-ounce glass instead of a 12-ounce glass twice a day will save more than 11 gallons, or $55, in the course of a year.

Milk is today’s white gold. The classic dynamic interplay of supply and demand is evident here, and unless we all put on our overalls and raise a Guernsey or Holstein in our backyard, demand will continue to outpace supply for the foreseeable future.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s membership-funded nonprofit consumer organization. Individual membership costs $25; business rates start at $125 (0-10 employees). For help and information write: Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329.


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