It'll take a while for the producers to respond to these prices. I suspect we'll see a long period of low prices for dairy products and pretty good prices for consumers. Although farm milk prices are lower and milk supplies are large, dairy production isn't the only force at work on retail prices, Uhl says. Retail competition is helping drive prices down, as well. If one grocer runs a special on milk, competitors often follow.
Fluid milk is used as a 'football' item in grocery stores.
Other dairy products, such as cheese and ice cream, have not been affected as much by the low milk prices, Uhl says. Butter prices keep churning along, too. Butter has been a safety net for the dairy industry.