The Cost of Milk Got You Down? Starbucks, too

Starbucks announced today that it expects to have trouble meeting its earning expectations, due to the increased cost of dairy products. I don’t know about you, but with children and a family of avid cereal-eaters, I buy a fair bit of milk and milk products. The cost of a load of groceries seems to be going up for our household about 10% a week. From Forbes:

An analyst downgraded shares of Starbucks Corp. on Friday, after the coffeehouse chain warned that a spike in dairy costs may hinder its ability to hit the high end of its fiscal 2007 earnings outlook. [full text]

3 thoughts on “The Cost of Milk Got You Down? Starbucks, too

  1. Never having been an admirerer of Starbuck’s or its $4 cup of coffee, I shed no tears at the news that the corporate “pad” was smaller than expected. However, the real significance of that news alert is what those of us with kids and Vitamin D needs and calcium and calorie needs confront each time we venture out to the supermarket. Life costs are getting into that interesting range of choosing more carefully what ends up in our food cart. Here in the rural heartland, we are at the end of the food highway–it arrives by truck and trucks use oil, and what is grown is harvested, processed and packaged by machines that need energy. In a world where others are competing for the same energy: China with 1.4 billion consumers, India with 1.3 billion, etc., there are only two options. Either we pay more and more and more, or we find additional energy sources. Unfortunately, from my vantage–and many will not agree–our Congessional parasites (who seem first inclined to protect their own pockets and perks, have again failed to help find the needed solutions. There will be no freeing of the adequate energy sources available in North America, and Congress, albeit rich in wind power, does not have a way to move the wheels of one truck bringing us milk at a reasonable price.

  2. Mr Wolberg hit on a big part of the problem with one word: “trucks.”

    Can we re-think the way we foolishly abandoned mass transit (read: trains) for the narcissism of one-person autos?

    I realize there would be huge problems to reviving trains as a viable alternative to trucks, but we gotta start looking at alternatives.

  3. Because it is a perishable product that relies on a quick delivery to the market shelf, milk is produced locally. And you want it delivered by train?

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