Just one year ago, dairy prices were considered
to be in a slump with California's lowest retail price for milk at about $2 a
gallon. This benefited consumers but left many dairy farmers with a lot of red
ink. In fact, according to
dairy industry officials, last year saw more than 90 California dairies going
out of business as a result of the low prices. It’s a new year and now dairy
prices have rebounded and advanced with hitting a record retail minimum of $3.10
a gallon for low-fat milk this month - and experts predict it should
remain high on Tuesday when the state sets allowable prices for August.
Many consumers may already be paying more that
$3.10 a gallon, said Steve Lyle, public affairs director for the California
Department of Food and Agriculture, which sets a price floor - called the
lowest observed retail price - for milk. Lyle states "The caveat, though, is the lowest observed may
bear no relation to what you pay at the store. For the most part, you're going
to pay more than that," he said. Lyle says "That's the price
at which a retailer cannot sell below because that's basically the cost of a
gallon of milk."
The Stockton Record Contributed to this Story.
