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LITTLE ROCK, Ark. (KTHV) - Milk prices are at an all-time high, according to industry analysts. While this is a good thing for farmers, consumers are starting to feel the pinch.

Hiland Dairy Foods General Manager Mike Flagg says milk is higher than it has ever been. The prices are set in advance. Next month, consumers will see a 65 to 70 cent increase from last year.

"Pricing is set by a formula with the USDA, and it is strictly based on milk components, butter, powder and cheese," said Flagg. "So they look at those products. How much of it is moving and what the price those are and then the formula will dictate what the price of drinking milk will cost."

Flagg says the drought in California is also impacting milk prices and so is the fact that the US is exporting more of it.

"The economy is being stimulated by all the additional milk sales through exports," said Flagg. "The good thing is the farmers are receiving a good price for their milk, and they are able to actually make some money. The bad thing is the consumers. The mom's at home buying milk for their children. They are paying a little bit more."

Flagg says just in the last month, they have seen a 3-5 percent decrease in their milk sales and overall sales have been down for three years in a row now.

"We are in unprecedented ground right now," said Flagg.

Milk prices change every month. Flagg says it is looking like there will be another increase in May. Then they should come back down.

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