milk prices moo-ving up

I wrote about this at length in a published piece from about two months ago.

From today's AP, we're told that milk prices in the U.S. hit a record last month-- at $3.80 per gallon. Increased worldwide demand is one factor. But the larger issue: significantly higher input costs (for feed; see: ethanol) and transportation costs to get product to retailers (see: the price of gas).

Independent of our country's flawed ethanol policies, farmers will probably adjust and increase their production of corn this year, helping milk prices to drop eventually. But until then, a gallon of the moo juice is going to be as dear as a gallon of gas.