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High Milk Prices Help Dairies Through Gas Price Spike

By: Amy Montalvo
Updated: May 28, 2008
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GOTMILKVO2008-05-28-1212028409.jpgJust like everyone else, dairy farmers are feeling the pinch of soaring gas prices, but theyre thanking their lucky stars that milk prices are soaring too. Over at Fox Dairy in Plainview, the heavy machinery is guzzling 25,000 gallons of diesel per year. With gas prices so high, thats over $100,000 a year, not to mention the cost of transporting feed for their cows. But most dairies have seen a surge in the price that processors are paying for their milk, and its helping offset the high cost of diesel. "Right now the demand for milk is very high," says Jasper DeVos of Fox Dairy. "And the US milk supply is a little lower than they expected, so of course due to the laws of supply and demand, the milk prices have gone up accordingly. But everytime you drive by the pump and you look at it, you kind of cringe of course, and you think oh were using that much everyday on the dairy."

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