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Despite Other Rising Food Costs, Dairy Prices Have Fallen

From rising avocado prices to the McDonald's Dollar Menu falling on hard times, over the last year, every section of the food industry has paid the price of cost increases. One segment of the food world, however, seems to have taken an opposite turn.

Prices of dairy products have seen a downward trend, as the weakening global economy has caused demand to decrease for US exports like milk. This decline has hurt certain sectors, such as dairy farmers and cheese producers: The value of cheese has dropped 40 percent over the last month. On the other hand, quite a few companies have seen the silver lining of falling dairy prices. Companies like Kraft Foods and Hershey's, and chain stores such as Domino's Pizza and Starbucks Coffee expect higher costs to be offset by favorable prices of milk and cheese.

While Kraft and other companies wouldn't comment on future price cuts, the plummeting value of dairy could trickle down to the consumer segment. Does it come as a relief to hear that at least one aspect of the food industry is seeing cost decreases?


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