The article in the WSJ reports the effects of the shift in domestic demand away from animal milk to plant milk and surging demand for animal milk overseas. Supply and demand predicts accurately the effects: the price of raw animal milk increased, sales and profits on animal milk products has decreased, and sales and profits of plant milk products increased. The article also reports that decreases in the price of raw animal milk in the 2009 led dairy farmers to exit the industry and that a drought contributed to the reduction in supply of raw milk. It reports that the supply of raw milk "is expected to increase this year, easing costs for Dean."
No comments:
Post a Comment