|May 5, 2004, as
reported by just-food.com: Ice cream lovers should
brace themselves this summer as higher temperatures are
bringing with them higher milk prices. The cost for a
gallon of milk will increase dramatically this month,
50%-higher compared to a year ago, and all other dairy
products can be expected to follow.
The milk shortage is being attributed in part to BSE
closing the Canadian border to live cattle, according
to The California Department of Food and Agriculture
(CDFA). The import restrictions have limited this year’s
dairy cows. In addition many farmers sold their cows
for slaughter during record low milk prices in 2002
and 2003. Also, feed has been expensive, scarce and
of poor quality because of drought.
The CDFA predicts prices will fall later, saying the
price rise will boost farming profits to a level where
lenders are more comfortable investing in expansion
plans, increasing US dairy supplies.