Rising costs of transportation causing problems in the dairy industry
IDAHO FALLS, Idaho (KIFI)- Dairy farmers are feeling the pain of inflation. Rising costs are making it harder to grow feed for cows, and ship the milk to the grocery store.
Sam Reed, the Chief Operating Officer for Reed's Dairy in Idaho Falls, says their costs for producing a gallon of milk are going up.
"I think feed prices are going to be really high just to fueling those tractors it's not cheap," Reed said. "They take a lot of fuel and the fertilizer that that goes in. I see feed prices going to be really high, which in turn makes the costs produce a gallon of milk just going to be that much higher."
Reed says everyone in their dairy is doing what they can to keep their costs down, but it's a process.
"Every day I get a call or an email or a letter in the mail of, 'Hey, sorry to do this, but we're raising your prices again and we're raising your prices again'," Reed said. "We try to eat as much of that as possible, but eventually you just kind of got to pass it along, which is not good for the end consumer."
According to the National Family Farm Coalition on average when we buy a gallon of Milk only about $1.45 gets back to them. With the inflation in the industry in the past year making prices go up 5% in the past year.
Reed's dairy current sells a gallon of milk for $5. "A large reason for the price has to do with the rising fuel prices to get the raw products to be processed Reed says. "As the price of fuel goes up, the cost to get those products to us, those raw materials, the sugar in the bottles is a big one for us."
If you are interested in helping your local dairy farmers Reed says "Buy local, that's the biggest thing. I think that helps our community. Supporting the local companies, local potato farmers, your local dairymen, your local grocery stores. I think that's probably the best thing we can do is, you know, at least keep the money in in our own communities here."
