Ethanol, Corn, Milk, Prices Increase

It appears that oil and gasoline aren't the only things that are going up in price these days. Milk, everyones favorite beverage, has gone up in price once again. From $3.80 to almost $5.00 a gallon. But milk however, isn't the only thing that will be on the rise. Other dairy products such as butter, cheese, yogurt, and ice cream will too.

The rise in the cost of milk is going to be hard on those of us who buy three plus gallons of milk a week. I don't drink much of it anymore. But that's only because of my kids. They love it and I'm not going to deprive them of it or it's benefits. Milk is too important of a staple in their diets.

Why has the cost of milk gone up so high? The cost of milk has gone up for two reasons: 1. Fuel. Fuel. Ethanol a biochemical fuel is the common link between the cost of milk and corn going up in price. Ethanol or E-85 as it is called by the transportation industry, has many uses. Therefore, there are several types of ethanol. We are familiar with the ethanol that is used to fuel the automobiles. That type of ethanol will eventually replace gasoline because it is less expensive and it complies with clean air act.

There is also ethanol that is processed for aviation fuel. Otherwise known as AGE-85 Aviation Grade Ethanol (or jet fuel.)

Believe it or not there is something called beverage ethanol. Beverage ethanol is processed for the use of making grain spirits, such as vodka, or hard lemonade.

But the largest use of ethanol is industrial ethanol. Industrial ethanol is used in many products that we use on a daily basis. Shampoo, mouthwash, disinfectant sprays, and even some of our medications such as pills and antibiotics as well.

2. Corn. There is such a high demand for corn now between needing it to feed cattle to produce dairy products such as milk and cheese, and ethanol a biochemical that is needed for just about everything from aviation to your medication. We need them both. As long as there is a need for it, it will continue to be a hot comity. Corn, who would have ever thought it would become the golden produce? Fuel, milk, and food, they're all in demand, and they're all going up.