Milk oversupply may lead to price drop
Last year was a prosperous year for dairy farmer Tom Oberhaus, Demand was at a record high. His business, Cozy Nook Farm was bringing in $25 per 10 gallon tank of milk. But, dwindling international demand and cost conscious consumers have sent milk prices nose-diving.
\"They tell us by May it'll be down to 14-dollars,\" Oberhaus said.
Oberhaus tells us it's simple supply and demand. But, even when demand is low, you still have to keep milking the cow. That leads to a milk glut. Farmers then have fewer buyers, so they are forced to sell the oversupply of milk for much less.
\"We'll have lost, 40-45-percent of our milk check will be gone compared to a year ago,\" Oberhaus said.
But, while the slowdown is hurting dairy farmers there's a kickback for customers. Analysts expect that prices could fall to under three dollars a gallon in the next few months.