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Why are milk prices going up?

April 26, 2017Dining drinks food going milk milk-based prices

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Why are milk prices going up?

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The explanation I have heard (given by our local grocery chain) is that it is partly due to increased costs of transportation and distribution, but mostly due to Ethanol production. Apparently, the type of corn used for dairy cow feed is what is being used for the Ethanol. That makes it harder for the dairy farmers to get, and drives the price of the commodity (feed corn) up, thereby increasing the dairy farmers’ cost to supply milk. That makes sense to me, but I don’t know how much truth there is to it. I’ll be interested in reading what others have found out.