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Article: Ups and downs: rising milk prices continue pushing dollar sales higher and pulling volume lower.(State of the Industry: MILK)
- Article from:
- Dairy Foods
- Article date:
- November 1, 2008
- Author:
CopyrightCOPYRIGHT 2008 BNP Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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At first glance, the news is hopeful-milk sales are up. In overall dollars, yes, but consumption is a different story.
Higher milk prices mean more revenue but fewer sales for the dairy industry, as current economic conditions pierce processors with a double-edged sword. Each day's gloomy news of a crisis-stricken economy features vignettes of folks struggling to make ends meet, many forced to choose between paying for milk or their mortgage. And in many households, milk is losing that battle.
"Dairies are feeling the pain of the 2008 trifecta: abnormally high fuel, raw milk and resin pricing, which cannot be recovered," says Miriam Erickson Brown, ...
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