Milk prices to reach 5$ per gallon

[katalyst]

Foxnews has a report that milk prices may reach $5 per GALLON by September. How are you guys dealing with this? I'm considering buying a turnkey shop soon but I'd really hate to raise prices right after it changes owner's because that is one way to alienate regulars. Also, anyone in the Seattle area use Smith Bros? Anyone got a line on milk under $3? One woman I know buys soon to expire discount milk at a local retail grocery but the last time I was in there the woman in front of me received an expired latte which is just foul. I'd rather not have to go that root to keep my prices down. Thank!

 

[sierradan]

milk costs

Starbux just announced a 9 cent increase in drinks due to milk costs. Going up more than gas! Has anyone else increased prices due to milk costs. I still don't understand how productions costs have gone up that much! That is what the increase was explained to me as.
Dan

 

[morrisn]

I think you will find that milk costs are increasing due to transportation costs ( fuel prices) The coffee business will increase prices as required to keep the margins up. If everyone else is raising their prices they won't even notice your increases.

 

[crema123]

I read a stat in Fast Company the other day that said something to the effect of 10,000 people using their own coffee mugs instead of paper would eliminate 27 cars from the road per year. Don't quote me on that, the the emissions trucking all the packaging to coffee retailers is significant in itself (not to mention deforestization, etc).

 

[CCafe]

Ahh its all BS, here's a nifty little article on how one man was using the system the way it was intended. He was able to lower milk 20 cents/gallon and in the end it cost him $400,000 a month paid out to his competitors.

http://www.washingtonpost.com/wp-dyn/co ... 900925.htm

I have family that used to run a dairy farm. So it wasn't uncommon to hear about price of milk and how a little guy (under 1000 head) really couldn't make money without selling to a co-op.

 

[Alun_evans]

Maybe Morrisn is right. Here in Indonesia, a country better known for its oil production, than plentiful supplies of milk, 1 gallon of the white stuff runs at about $2.90. However fuel costs an almighty US$1.85/gallon. Maybe the subsidised gas is keeping the price of milk down.