Effective Sunday, the California department of food and agriculture has set the price California dairy operators will be paid at a record $1.98 per gallon of milk, up from $1.06 a year ago. The minimum retail price for a gallon of low-fat milk, said the Department, will be $3.10, compared to $2.10 in January.
The State posts the "lowest reported lawful retail price'' for milk due to a law that says milk cannot be sold below cost.
The price spike -- the result of a drought in Australia, tightening supplies from Europe, higher demand in asia and the diversion of feed corn to ethanol plants -- also threatens to jack up the cost of cheese, lattes, chocolate bars and pizzas. - SFGate