ARLINGTON, Va. -- Consumers could see lower milk prices at supermarkets as a result of farm-level prices for bottled milk dropping significantly for the second month in a row, officials with the National Milk Producers Federation announced.
hit in June. The prices consumers see at the stores are expected to follow, officials said.
Price increases this spring were largely the result of tight milk supplies, officials said. After two years of extremely low milk prices, many farmers chose to leave the dairy business or reduce their milk production. As the number of cows fell and milk supplies tightened, prices rose at both the farm gate and grocery shelf.
Three months of high prices, however, have encouraged farmers to add cows and increase production. Officials said the number of cows being milked across the country has been rising since May, and production and prices are expected to moderate for the rest of the year.