Dairy Farmer Profits

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Colorado dairy farmers are on the verge of turning years of losses into profits. The news comes as low supply and strong demand are pushing milk prices sharply higher, helping producers recover from a depression that decimated the dairy industry nationwide.

On average, milk processors paid Colorado dairy farmers $16 per 100 pounds of milk this month. That's projected to jump to as much as $20 next month. If that turns out to be the case, it would be the higest price on record, and double the $10 per hundred weight producers received a year ago.

The Department of Agriculture says the increased raw milk prices
will cause a 4% to 6% increase in retail prices for dairy products this year. Consumers could see as much as a $.70 per gallon increase when buying milk at grocery stores.