The National Milk Producers Federation says production is high. "Farmers are cranking out a lot of milk and that's translating into a lot of dairy product production and domestic demand has been somewhat soft this year." Stephen Cain, VP of NMPF’s Economic and Market Analysis, said.

It helps when farmers and ranchers have more flexibility. Coming off record high prices, President Trump is cutting the red tape, getting the bureaucracy out of the way, increasing supply. “This is a classic supply side solution. Prices go up, and producers respond by producing more.” Sr. Economist EJ Antoni said.

The report shows milk up by 4 percent, that’s an increase from 1.5 to 2 percent. With more supply, now prices go down, along with other products that require milk, like cheese and butter- causing a trickle-down effect of savings across the spectrum of dairy products.

Antoni also points to Trump’s energy policies. He says when you pick up a bag of bread, or carton of milk- it’s not just the lower prices of gas or diesel that fuels the truck. “It’s also the diesel fuel that goes into the farmers tractor; it’s also the natural gas that’s used to create most of the synthetic fertilizer in this country. Reducing energy prices has helped bring down prices for farmers for ranchers, then also for consumer prices at the grocery store.” He said.

In addition, he says Trump is also lowering the cost of beef by increasing supply. In turn, more cows will go into production and that too will lower prices. He says the Biden policies slowed production in energy/natural gas/oil, as well as in the poultry industry, and didn’t allow farmers and ranchers the flexibility they have today allowing for increased supply, in turn, lowering prices for families putting food on the table. He says it’s astonishing how much energy prices affect the food supply chain. As the President continues to address affordability in America, like he is now in talks with pharmaceutical companies. This weekend, Trump announcing Americans pay higher costs than most other countries, for the same drug from the same plant from the same country. It is time, Americans have a fair price and a voice too. High drug costs have long time hindered American pocketbooks. Hopefully, next we can tackle the high costs associated with hospital stays, doctors’ diagnostics- such as Ultrasounds and X rays. For now, we will enjoy a win in the dairy department.

San Antonio's First News