Milk prices to soar just as ice cream cravings hit

May 5, 2004, as reported by 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.

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