# Why Do Milk Prices Spike And Crash? Because It's Like Oil : The Salt : NPR

> US and European milk prices have fallen sharply, with farm-gate prices about 20 percent below last year and 40 percent below the 2014 peak. Dairy farmers in Europe and Australia have protested. The article explains that milk is largely refined into cheese, yogurt, powders and whey products, and that cow numbers and consumption change slowly.

- Date: 2016-08-05 · published 2016-08-05T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/8323-why-do-milk-prices-spike-and-crash-because-it-s-like-oil-the-salt-npr
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Dairy price swings are driven by inelastic supply and by product mix, so low milk prices reduce dairy producer margins and can cut herd-related demand for feed over time.

## Read by commodity

- MILK: bearish ▼

## Sources

- npr.org: https://www.npr.org/sections/thesalt/2016/08/05/488708017/why-do-milk-prices-spike-and-crash-because-its-like-oil

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.