Got milk?  U.S. dairy farmers are saying they’ve got too much!

Milk prices are down more than 50 percent from last summer after hitting all-time highs in 2007 and notching the second highest prices on record in 2008.

Like so many commodity crops such as corn and soybeans, milk prices have plummeted because there’s just too much of it and not enough demand. People are frugal in their restaurant spending or expensive cheese consumption these days which accounts for the greatest value percentage, where home consumption is expected to rise, the effects are believed to be minimal.

Dr. Samuel Simon, dairy farmer and founder of Hudson Valley Fresh.

Milk is a global entity because it can be dried into a powder.  It costs $20.50 to make 100 lbs of milk.  If you’re getting $11 for it, there’s only so long you can survive without going bankrupt.

While sustainable production methods require slightly higher costs, the quality far outweighs it’s alternatives.

For more on the state of the dairy industry and our full interview with Dr. Simon, click here.

Photo by rich_awn.