In 2007, the price of milk at the grocery store increased 12%. Spending on milk accounts for 12% of the “average” American household grocery budget, so this was a significant increase.
This year, the agriculture industry is predicting that milk prices will level out or even decrease thanks to an increase in supply. However, some analysts believe that any reduction in wholesale prices may not find its way to the grocery shelves.
I’m not an “average” American household. I purchase food for myself only. Not only that, I’m lactose intolerant, so I only use small amounts of milk in cooking, and I never drink the stuff.
I buy Lactaid brand 2% reduced fat milk, usually one quart per month. Today’s retail price at my grocery store for this brand is $4.19 for a half gallon. This is compared with the Tuscan Farms brand of milk (including lactose) at $2.69 for a half-gallon.
My milk is more expensive, but I don’t buy much of it. That limits my exposure to last year’s price increase.
Did you feel pain in the wallet last year as a result of increased milk prices and did you cut back on your milk purchases?
Updated January 16, 2010 and originally published March 12, 2008. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.