If you think that the commodities bust is restricted to base metals (Dr. Copper is sick) or sector-specific ones (Auto bust has destroyed palladium prices), think again. From the NY Times: As Recession Deepens, So Does Milk Surplus

. . . demand for dairy products is stalling amid a global economic slowdown and credit crisis, even as supplies have increased. The result is a glut of milk — and its assorted byproducts, like milk powder, butter and whey proteins — that has led to a precipitous drop in prices.

The price of powdered skim milk, used in infant formula, dairy products and processed foods, has fallen to roughly 80 cents a pound today from about $2.20 in mid-2007. Other dairy products have declined as well. Whole milk at grocers has not declined as rapidly as wholesale powdered milk, but it has dropped to $3.67 a gallon, down nearly 6 percent from the peak.

Hmm. As part of the $1.23 gazillion government bailout package for milk producers, the US government promises to make its staff drink at-least one glass of milk a day. And all bars in DC will only serve milk in 2009.

Related Posts: