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By Jessica Bruni, Sentinel Reporter, April 10, 2007

Last updated: Tuesday, April 10, 2007 10:23 AM EDT

George Strupp has never been one to dip his cookies in milk. He doesn’t twist off the top of an Oreo, nor does he sop up the milk with what’s left of the cookie after the all cream filling is licked off. Rather, he leaves that delectable delight to his eight grandchildren.

“They drink milk like it’s going out of style,” he said.

Despite the fact that dairy prices are expected to increase sharply by October, Strupp said, it won’t stop him from buying milk. One of the alternatives is soda and — besides not having the same nutritional value — Strupp said his grandchildren don’t particularly care for it. Neither does he.

“I love milk,” he said unabashedly.

Last month, dairy economists predicted the retail price of milk could rise as much as 30 cents per gallon by fall. According to Ken Bailey — an associate professor of agricultural economics at Penn State who specializes in dairy policy and price analysis — increases were spurred in part by increasing fuel and feed costs incurred by dairy farmers and a growing global demand for milk products. Accordingly, dairy products like cheese, butter, yogurt and ice cream also are expected to rise in price.

Making the rounds at Nell’s Shurfine in Carlisle Monday, grocery shoppers were disappointed, but grudgingly accepting of the increases. As Danville resident Jay Confer put it, dairy is a product most can’t go without — and customers will have to pay up accordingly.

“You’re going to have to get it anyway,” he said. “When the prices go up, we’re just going to have to grin and bear it.”

Bailey said dairy cow feed costs — particularly corn and soybeans — are rising rapidly because those products are being used more and more to produce ethanol. As a result, the farmers are feeling the squeeze financially as they struggle to buy feed for their animals at the new prices.

In fact, Bailey said, data from earlier this year showed farmers are reducing milk production to cut costs. Less milk also equals higher prices in the grocery store.

Higher costs to farmers

Sandy Costello, dairy herd health extension educator with Penn State in Cumberland County, emphasizes farmers are not profiting from the price increases. The hike in prices is to combat the cost to feed the animals, she said. Rising fuel costs also have had a negative effect on farmers, because they must pay more to operate their tractors and other equipment.

“They receive very little of the money that is paid by the consumer when they purchase a gallon of milk,” she said. “A third or less goes back to them.”

Although the government subsidizes food prices so consumers don’t pay as much for products as people in others countries, Costello said, this sometimes winds up hurting farmers.

“It’s very good for us as consumers,” she said. “But it’s probably part of what contributes to farmers having a difficult time getting paid what they would get paid in a free market society.”

Strupp said he’s well aware of the chain effects of supply and demand, but like many others, he feels helpless to change it.

“It won’t affect me from buying milk,” he said. “The gas prices don’t affect me from driving a car either.”

Joyce Henry agreed.

“I’m not happy about it, but what are you to do?” she said of the rising milk prices.

Few will cut back

Laura England, vice president of communications for the Mid-Atlantic Dairy Association, agreed price increases shouldn’t cause people to shy away from dairy altogether.

“I think most people will continue to buy milk, especially it they have children,” she said. “I really do think that it’s such a staple that people will find other ways to manage their food budget without cutting their milk purchases.”

If you have ever considered switching from whole to skim milk, England said, this is the time to try it. The same vitamins are found in all types of milk. However, reduced fat versions tends to be cheaper. For example, if whole milk is at $3.26 per gallon, England said, lower fat milk tends to be less.

“You get the same nutritional value from the milk, but at a smaller price,” she says.

A senior citizen, Inez DeStefano seldom buys milk, and when she does, it’s usually only a half-gallon at a time. A price increase won’t bother her that much, she said, but she knows it won’t be the same for others.

“I know people who have a lot of children that this is going to be rough on,” she says.

WIC will continue

But it won’t adversely affect those 240,000 people statewide who participate in the Women Infants and Children program, better known as WIC. Richard McGarvey, spokesman for the state health department, said while he’s sure the increasing costs may have some effect on the program, it’s in no danger of disappearing.

WIC, which provides nutritional food, like milk, to low-income families, received $140 million in federal funding last year.

“Certainly from WIC’s standpoint, the program is not going to go away,” he said.