Comments on: How is it possible that milk costs more per gallon than gasoline? http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline Are You Fed Up Yet? Tue, 06 Jan 2009 03:41:19 +0000 http://wordpress.org/?v=2.5.1 By: John N http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-474 John N Wed, 26 Dec 2007 13:07:36 +0000 http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-474 I have zero knowledge of the oil industry… The oil industry is an example of economies of scale. Long run average costs when producing an additional barrel of oil < the cost to produce one additional hundredweight of milk. Additionally, farmers are price takers, so it is difficult for them to directly influence the price of milk (they try through supply management). Milk prices are a function of cheese, butter and powder prices released by the national agricultural statistical service. As these commodity prices change, so does the price of milk per hundredweight. Milk value is re-blended throughout the country based on utilization percentages by class. From there the milk value varies depending on the location.<br><b>References : </b><br> I have zero knowledge of the oil industry…

The oil industry is an example of economies of scale. Long run average costs when producing an additional barrel of oil < the cost to produce one additional hundredweight of milk.

Additionally, farmers are price takers, so it is difficult for them to directly influence the price of milk (they try through supply management). Milk prices are a function of cheese, butter and powder prices released by the national agricultural statistical service. As these commodity prices change, so does the price of milk per hundredweight. Milk value is re-blended throughout the country based on utilization percentages by class. From there the milk value varies depending on the location.
References :

]]> By: Rich Z http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-473 Rich Z Tue, 25 Dec 2007 20:11:15 +0000 http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-473 In this area it is because the farm lobby is "trying to protect the family farmers" by keeping prices high. Unfortunately there is no milk-drinker lobby "trying to protect the family children." They have set "minimum" prices and prosecute any store that sells for less than those numbers.<br><b>References : </b><br> In this area it is because the farm lobby is "trying to protect the family farmers" by keeping prices high. Unfortunately there is no milk-drinker lobby "trying to protect the family children."

They have set "minimum" prices and prosecute any store that sells for less than those numbers.
References :

]]> By: Bryan http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-472 Bryan Mon, 24 Dec 2007 21:45:47 +0000 http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-472 Too bad the farmers get the smallest piece of the end price. They do the most work. I had some friends make a comment about milk prices last summer, complaining it was high, and yet they have no problem spending $3.50 on a mix drink! Doesn't make sense to me.<br><b>References : </b><br> Too bad the farmers get the smallest piece of the end price. They do the most work. I had some friends make a comment about milk prices last summer, complaining it was high, and yet they have no problem spending $3.50 on a mix drink! Doesn't make sense to me.
References :

]]> By: seemorebetter http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-471 seemorebetter Mon, 24 Dec 2007 14:40:00 +0000 http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-471 It won't pretty soon! Although In Barrow Alaska I paid almost 8$ a Gallon that was back in the 70s. Cost of Transporting it to the end user.<br><b>References : </b><br> It won't pretty soon!

Although In Barrow Alaska I paid almost 8$ a Gallon that was back in the 70s.

Cost of Transporting it to the end user.
References :

]]> By: Helpme http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-470 Helpme Mon, 24 Dec 2007 11:55:12 +0000 http://www.costofgas.net/gasoline-costs/how-is-it-possible-that-milk-costs-more-per-gallon-than-gasoline#comment-470 Hi Uni : Must be that consumers are gulping more milk ! ( than gasoline ). Therefore , the government's raking in more money with every quart or gallon of milk sold . Good information ! I didn' t realize milk was more expensive than gasoline .<br><b>References : </b><br> Hi Uni :
Must be that consumers are gulping more milk ! ( than gasoline ).
Therefore , the government's raking in more money with every quart or gallon of milk sold .
Good information ! I didn' t realize milk was more expensive than gasoline .
References :

]]>