Milk prices are at the lowest they've been in almost half a decade, and it's not making things easy for local farmers.
While paying less than $2.00 a gallon for milk may seem great for consumers, it's ultimately hurting smaller, more local farmers. For most, the cost of producing milk these days comes with little to no profit.
Paul Gross of Isabella County's MSU Extension Office says the lower prices could be the result of a weakened demand in the global economy.
"You know, in the export market, when the dollar weakens or the worldwide economy softens, the demand for products decreases," Gross says. "The thing about the dairy industry; these cows are milked every day. You can't turn production on and turn it off. And so you're building these inventories when demand is poor."
The built up inventories and poor demand translate into lower prices, Gross says.
Farmers probably won't be cutting production just yet.
Gross says prices may go back up once demand increases.
