Jun 25

Milk prices now topping $6 a gallon

Milk does the body good, but not the pocketbook. It’s now more expensive than gas, topping $6 a gallon at some local grocery stores. The state agriculture commissioner says there are market forces at play, pushing up costs for this calcium-boosting beverage.

We’ve all heard of sticker shock at the pump, but how about sticker shock on the grocery store shelves. Milk costs are skyrocketing nationwide.

Joe Thomas at West Ashley Target says they only sell Target’s Market Pantry brand because name brand milk got so expensive.

"My understanding is, without checking into marketplace specifically, that the Market Pantry brand is about $2 less a gallon than the name brands that are selling nationally," said Thomas.

Live 5 News called around to several area grocery stores and a gallon of milk cost anywhere from $3-$6 a gallon, for either generic or name brands.

The US Department of Agriculture sets milk costs each month, based on market conditions.

"I hate to sound like an economics professor but it is all based on supply and demand," said SC Agriculture commissioner Hugh Weathers.

South Carolina Ag-Commissioner Hugh Weathers says there are three main reasons for high costs.

1. Demand for milk worldwide is high.

2. Milk supply in Australia and New Zealand low because of drought.

3. Fuel costs to deliver milk from farms to processors are up.

He says the most expensive part of milk production is feeding the cows, and the cost of corn and grain is up.

"This latest episode with the flooding in Iowa will not help because we think we will lose between 2 and 3-million acres of corn," said Weathers.

Market conditions causing milk costs to soar, while demand is high.

One grocer we spoke to says he got a memo today from his milk manufacturer, saying wholesale costs for milk will be $5.50. He says that means the retail price for that brand of milk will go up effective June 30th.