Milk: Cheaper in Manhattan?

According to a new study by Councilman Eric Gioia, the cost of milk varies vastly across New York City.
Milk: Cheaper in Manhattan?
7/7/2009
Updated:
7/7/2009
NEW YORK—According to a new study released by Councilman Eric Gioia (D-Queens), the cost of milk varies vastly across New York City. Dramatic differences in prices were seen among vendors that are in close proximity to each other across all five boroughs.

Both the widest price range and the cheapest gallons of milk were found in Manhattan, for $5.99 and $2.25, respectively. The price ranges did not fare much better in the other four boroughs, with $2.50-4.99 reported in the Bronx, $2.69-5.99 in Brooklyn, $2.89-4.50 in Queens, and $2.89-3.99 on Staten Island.

Sixty supermarkets, bodegas, convenience stores and drug stores participated in the survey. The results indicate that parents could save $255 per year by buying the least expensive gallon of milk, as opposed to the most expensive, in order to provide the recommended 3 daily cups to their 4 to 8 year-old child.

Councilman Gioia urged New York State Department of Agriculture (NYSDA) to advise consumers of the average cost of milk on its website, and to provide stricter enforcement of suspected price gouging. He also proposed legislation that would require milk vendors to post consumer information for reporting suspected gouging.

“Milk is not a luxury, it is a necessity,” stated Councilman Gioia, who is the Chairman of the Council Committee on Oversight and Investigations. “Milk is essential to any healthy diet—especially for children, and it should be affordable for everyone. Families shouldn’t be forced to give up milk for less nutritious alternatives like soda or sugary juices. All New York families should be able to afford milk. Right now we have system that hurts farmers, small business, and ultimately parents and children by allowing the middle men to keep prices high. The Department of Agriculture needs to step up and protect consumers,” he continued.

Councilman Gioia’s research indicates that milk prices in New York City are not in line with the nationwide trends. According to the Department of Agriculture and Markets, the national average price of milk has decreased by approximately 30 percent since July 2008. However, the average cost of milk in New York City has dropped by just 16 percent, and is currently over 20 percent higher than the national average. His investigation also uncovered that while wholesale prices of milk for the New York metro area have dropped by over 83 percent since November 2007, the retail price has dropped by only 15 percent during the same time period.

In the previous survey conducted by Councilman Gioia in November 2007, 86 percent of the participating vendors across New York City were found to potentially overcharge for milk based on the NYSDA price threshold data.

According to published reports, milk is the second most commonly consumed beverage across the United States, and the most consumed beverage among children between 4 and 8 years of age.