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   Small Dairy Price Changes Ease Pain
by Carol Ryan Dumas, Capital Press
Posted: Monday, November 9, 2009 at 4:36PM EST

With retail milk prices up significantly in 2007 and 2008, Dairy Management Inc. wanted to understand how those increases impacted overall milk sales.

Manufacturers and retailers typically pass price increases on through infrequent but large price increases, gradual price increases spread over time or a combination of both.

In order to determine which method impacts milk volume sales the least, DMI turned to data from Information Resources Inc. It found that milk pricing is more volatile than total food and beverage pricing.

Picture Caption: A store employee arranges dairy products in a display case. A new study documents how consumers react to price changes in milk.

Picture Credit: Capital Press

To read the rest of this story please go to: Capital Press

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