Got milk? Well, it's gonna cost you to wash down those cookies—up to $6.49 a gallon, depending upon where you fork out the cash and what type of milk you're buying. You might even find a "dairy charge" tacked onto your dining bill when the waiter hands over the tab at the local restaurant.
Retailers and restaurateurs are claiming that because dairy farmers are getting more for the bone builder, they have to pass the cost on to us. But the numbers tell a different story.
Although it's true that in June California dairy farmers were getting $1.90 per gallon—a record high figure—and retailers were paying an additional dollar per gallon to cover costs, that still only puts the math at $2.90 per gallon, according to the California Department of Food and Agriculture. So it might seem reasonable if the grocery stores add another buck to the cost and sell the white elixir for $3.90. Hey, I'll even give in to another dime and make it an even 4 bucks. But the major markets in the area are selling most brands for $5 or more, and if you want organic by the gallon, get ready to dig deeper and pay almost $6.50. That's one heck of a profit margin, especially when California is a milk-producing leader.
Our state produces 35 billion pounds out of the nation's 175 billion pounds of milk produced annually. That's about 20 percent, yet once again we have the dubious honor of paying the most for a product many families can't do without. By comparison, other cities around the country like Miami, Dallas and Boston are paying in the range of $3.36 to $3.74 a gallon for milk. So come to think of it, my $1.10 profit sounds way too generous, leaving the consumer asking, "Is the high cost of 'what does a body good' ever going to come down?"
The California Department of Food and Agriculture said that the July price set by the state to the farmers has dropped by 17 percent to $1.58 per gallon, and the August price will fall even further to $1.32 a gallon, but I'll lay you odds that when you go to the grocery store a month from now, nothing much will have changed in the cooler section. OK, maybe it will drop a few cents, but those chains will still be profiting in the $2.50 and upward range. Apparently, our grocery chains, like our oil companies, are acting on the notion that if Californians need it, they will pay for it, no matter what the price.
But unlike gas prices and the soaring housing market in the Bay Area—which we can do nothing about—we do have an option when it comes to milk. And the solution is a win for us and the independent market. Pick up your milk at the "ma and pa" store or places like Trader Joe's or the discount shops like Costco.
When I was in one of the major supermarket chains, a gallon of milk was $5.06, but when I went into Trader Joe's to pick up some items, the milk was only $3.79, a $1.27 savings. That might not seem like much, but it sure adds up over the long haul. And I am not the only one advocating this.
Long before I finally wised up to this gouging, Consumers Union—a nonprofit publisher of consumer reports—in 1998 offered the same advice. It recommended that consumers check milk prices at their smaller neighborhood stores. That doesn't mean the franchise convenience stores or quick-stop places. The nonprofit was referring to the independents in the area. These businesses tend to price their milk lower because they're hoping customers will be drawn in for other items.
Even if you don't tend to frequent these stores because it's more convenient to make all your purchases at one place, you might want to at least check them out if your family consumes a lot of milk.
I was surprised to see the extreme difference in milk prices, because logic says the chains should be cheaper than the independents. But this is one time logic doesn't come into play.
So the next time you make a peanut butter sandwich for your child or treat yourself to a cookie that's washed down with a cold glass of milk, the aftertaste should be a whole lot sweeter because the cost of enjoying it was a whole lot less.
Moryt Milo is the editor of The Willow Glen Resident. She can be contacted at 400.200.1051 or mmilo@svcn.com.
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