MILK PRICES SOARING

From USA Today:

It's cheaper than oil and, barring a global mad cow crisis, we'll probably never run out of it. But milk has one thing in common with oil: It's trading at record highs.

Milk prices hit a record last month in the United States, where consumers paid an average $3.80 a gallon, compared to $3.29 in January, according to the U.S. Department of Agriculture. It forecasts prices will remain high throughout the year.

International dairy prices increased 46% between November 2006 and April 2007, with milk powder prices increasing even faster, according to the Food and Agriculture Organization.

The boom in biofuels is also pushing up corn prices and, as a result, making animal feed more expensive. Farmers have responded by raising milk prices. Corn futures indicate that the price of corn will remain high this year, according to the Washington-based International Dairy Foods Association. Prices have also risen for soybeans, another feed crop, it said.