Focus on food: May 16, 2004

Heard in the Aisles...

Dairy Prices Through the Roof.....

There is widespread disbelief among consumers at the skyrocketing prices of all types of dairy products. Nothing seems to have been left untouched. There are reasons why this is so, although understanding them will not change the current retail prices. At least though, you will know that this is not a summertime conspiracy brought on by the annual influx of summer residents.

• Egg prices have been up for awhile, in large measure to the increase demand caused by lo carb diets, specifically Atkins and South Beach. Protein is king and our friendly hens are the queens.


• Milk prices have exploded due to a combination of factors: more money being paid to the farmers ( a good thing ), fewer milking cows coming down from Canada after the mad cow scare, naturally fewer gallons of milk produced by cows at this time of year, and a production slowdown of the hormone given to cows so that they can produce more milk

Needless to say, the increased cost of milk drives up costs for any milk related item including cheese and ice cream (just in time for the summer!). I haven't even mentioned the new terrorism act and its impact on imported products, including cheese. Dairy increases, along with gasoline prices are primarily to blame for the growing fears of a recurrence of inflation.

I hope that this has shed some light on the problems we see it. I can assure you that our prices are comparable with our major competitors and in many cases we are lower. We hope that it will not be too much longer before prices move back to a reasonable level, but it frankly could be awhile.

Posted by Albert Lees at May 16, 2004 03:05 PM