Friday, August 10, 2007

High Milk Prices, Part 3

Milk price stories in the media are still drawing a lot of attention. And most of them are spewing the same inaccurate information. So it's surprising to read today on CNN, "Skyrocketing milk prices hit families just in time for school" that has the story almost correct. The article reports that worldwide demand and Australian drought are causing the higher prices. But it still leaves the notion that all input costs get passed along to consumers in final food prices. And it conveniently ignores higher energy, marketing and labor costs---which have been shown to be the biggest cost drivers. Nor does it get into the facts of how much corn is actually used or that the ethanol process creates Dried Distillers Grains that is used for animal feed. Well, reporting is at least getting a little bit better.


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