mooblog

I was reading about the way milk prices had jumped in the last seven years. Did you know that while oil prices have been increasing at 13% in the last seven years, milk has been shooting up at 14%? Considering that the world drinks 1.9 billion liters of milk every day, it means that every land seems to be flowing or rather overflowing with milk! If you were to look at the average, I read, it would mean that every year, there were 13 billion liters more being drunk and that is approximately what a country like New Zealand produces in one year.

Why this sudden milk madness? Is everyone drinking more milk suddenly? In these days of people tending to find everything about dairy objectionable, how come there’s more and more milk and milk products being consumed? One major reason is the emergence of new markets and therefore a lot more money being spent on what till now could have been luxuries. The rise in disposable incomes now puts milk into a lot of people’s necessity bracket in countries like China, Brazil, India and Russia and there are many more drinking milk there like it were going out of fashion.

Well, that contributes to the prices of milk going up. It really is a result of demand and supply – the demand just cannot be met by the farmers no matter how hard they try. When the combined billions of China and India chasing the white stuff, one can only expect milk prices to rise, not fall.

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