Soaring Milk Prices Hurt Business Owners
May 12, 2004 -- At the Long Grove Confectionery Co. in Buffalo Grove, Ill., the aroma of milk chocolate is overwhelming. The plant produces a million pounds of specialized chocolates every year. And I can attest — the chocolate is very, very good.
But as we watched swirls of creamy delights being molded into various shapes this week, John Mangel, the man in charge, expressed his concerns about how much all of this is costing him.
"It's not been something that we quite honestly expected," he said. "It has been a very quick and very severe increase in prices."
Mangel is talking about milk prices. They are at record high levels now and are not expected to go back down until much later this year. At Long Grove Confectionery, butter costs twice what it did last year. Whipping cream prices are up 50 percent in just the last three months.
"That increase has just been horrendous," said Mangel, who added that he is worried the price spike may force layoffs at his plant that employs 100 people.
Businesses Hit Hard
But Mangel knows he's not alone. "The cheese guy will be every bit as much affected by the increases in the milk prices as we are," he said.
As a definite "cheese guy," Harry Isensee agreed.
He and his wife, Colleen, run a cheese store in the Wisconsin Dells, Wis., they said they are worried about the price hikes they are being forced to pass along to the consumer.
"People aren't going to buy five to 10 pounds when they come here now," he said ruefully. "They'll probably buy two to three pounds."
Colleen added: "Milk is going up. Cheese is going up. Butter is going up. Ice cream is going up."
Indeed, at some major supermarkets, a gallon of milk is approaching $4. And that's amazing because for the last few years, the price of milk had been at a record low level.
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