Forget the gas… what’s going on with the price of milk?
According to CNNmoney.com, American consumers should be more concerned about the price of a gallon of milk than of a gallon of gas. As corn prices continue to climb with the demand for ethanol, we may have more problems on our hands than the ones we’re facing at the gas pump.
Experts are predicting that despite the fact that corn prices are already twice what they were two years ago, it’s likely that they’ll just keep on rising. This rise, will continue to escalate prices of other items used daily by consumers including milk.
Many, in fact, are predicting an additional increase of between 3 and 5 percent. Rising prices for corn will impact soft drinks, cereal and snack foods as well as steak, pork and chicken.
While we struggle with the price of a gallon of gas topping $3.00, it seems as if a gallon of milk may soon be just as precious of a commodity. Prices for milk have increased 10 percent in the last year and are expected to rise another 30% before corn prices stabilize.
Rising corn prices coupled with droughts in Australia and New Zealand will most likely place a $4.00 per gallon price tag on milk by late summer. According to the report on CNNmoney.com, increased demand from Asian countries is also somewhat to blame.
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