The $10.20 per bottle milk in the U.S. has been going up, but it’s not for the reason many think.
The cost of producing it, at least in the first place, is actually lower than the prices of imported milk from China, India and other countries.
Here’s why: While milk from the U, U.K., and other dairy farmers is usually a good price, for the average consumer, the milk you pay at the supermarket is actually quite expensive.
“You’re paying about $5 for a gallon of milk at the grocery store, and you’re paying another $5 per gallon for that same gallon of pasteurized milk,” said Sarah Pappas, director of food and agriculture programs at the Center for Food Safety.
“That’s more than the cost of your average bottle of milk.”
In the U and elsewhere, the cost per gallon is a fraction of what the average person pays.
In fact, in 2015, the price of a gallon milk in Australia was just $1.50 per gallon.
That’s why U.N. figures show that the cost to produce one gallon of pure milk in 2015 was about half what it was in 2006, when the average American paid just $4.50.
“If you were to just buy it at a grocery store now, it’s still a lot less than what it is in 2006,” Pappans told The Daily Beast.
So what’s causing this price increase?
“It’s a mix of things,” said Pappases.
The U.P.A. and other U. S. food groups are trying to make the price more affordable.
In 2017, the U’S.
Food and Drug Administration released its “New Market Report” for milk and infant formula.
The agency found that infant formula costs were higher than the average price for milk because many baby formula manufacturers have moved to cheaper, pasteurized dairy products.
That could be a result of the increased competition among U. K. milk producers.
“We think that this may be the result of an increase in the supply of milk produced by the U.’s milk industry,” said Peter Johnson, an analyst with the food industry research group Euromonitor.
“The U. is now producing about a quarter of the milk that the U’s used to.
So the U is able to produce about a third of the world’s milk, so this has a significant impact on infant formula prices.”
In addition, the increase in milk prices can be linked to the rise in the cost for imported milk, which in turn is linked to increased demand for the product.
In the past year, U.’
dairy farmers have reported a lot of extra milk production, according to Pappa, due to new rules in Europe and elsewhere.
“As the milk supply is constrained, we’re seeing increased demand from consumers in Europe for infant formula,” she said.
The price increases may be more pronounced for U. k. consumers.
“Some people may see this price hike as a price to be paid for the U k.’s lack of ability to compete in the world market,” Johnson said.
“Others may see it as a sign of U. s continued dominance of the global infant formula market.”