Holy cow, milk prices are going through the barn roof!
The state-controlled price for a gallon of milk in New York City will rise to $4.37 next Tuesday, state regulators said, in the wake of rising fuel costs and diminishing corn supplies.
State agriculture authorities set the loose ceiling of milk prices, based on the cost of farm production. Individual stores can top the milk-price threshold – now at $3.93 a gallon – if they can show financial hardships, such as extraordinarily high wholesale, rent or delivery costs.
So in practice, the state-set threshold generally applies to the large supermarkets, while neighborhood bodegas tend to have higher prices, officials said.
Industry analyst Kenneth Bailey predicted the price of a gallon of milk should stay in the $4.37 range for the rest of 2008.