Agricultural Economics Department


Date of this Version

October 2002


Published in Cornhusker Economics, 10/23/2002. Produced by the Cooperative Extension, Institute of Agriculture and Natural Resources, Department of Agricultural Economics, University of Nebraska–Lincoln.


Dairy farmers don’t need to be reminded that milk prices have declined dramatically in the past year. In September, the U.S. average all milk price was $11.50, or down about one-third compared to a year ago. The answer lies in that basic economic tenet - supply and demand. Too much supply relative to the demand for milk and dairy products.