Americans who may have been rejoicing for the past several months due to low milk prices may feel disappointed to learn that they may have to pay more in the near future. Milk prices have dropped as low as $1.99 a gallon, and are averaging $2.98 nationwide as opposed to the $3.89 average it reached at its peak. However, low prices have left dairy farmers struggling and as a result, some are working towards measures to increase the price.
According to the National Milk Producers Federation, they expect to see a $12 billion loss in sales this year. This loss can be attributed to a lack of demand globally, which has in turn dropped prices for consumers. Of course, in this tough economy, consumers are thrilled to save money; however, dairy farmers are accumulating thousands in debt.
To help solve the problem for farmers, Senator Bernie Sanders has introduced a proposal to Congress seeking to boost milk prices by reducing supply. While the proposal is still working its way through Congress, analysts like Bill Glatt of Advanced Economic Solutions expect milk prices to increase as soon as next year - due to government diary purchases, cattle slaughter, and an increase in demand.
Since milk and a few other dairy products were among only a few areas where food consumers were finding relief, this increase could put a frown on a lot of faces. If you rely on a lot of milk and are truly concerned about an increase in price, here are a couple of things you can do:
- Save your money and budget - You can put money to the side or add a "milk" fund to your budget so that when prices increase, you won't be side-swiped by the cost.
- Buy now and freeze - Milk can be stored frozen at 0 degrees Fahrenheit for up to three months as long as you freeze it by the "used by" date and defrost it in the refrigerator.
Looking for ways to save on groceries is a big deal in this economy. So if an increase in milk prices could adversely affect you, consider these ways to get the most bang for your buck.