There's apparently a milk glut on, thanks to the depression, and growing stockpiles of powdered milk:
The price of powdered skim milk, used in infant formula, dairy products and processed foods, has fallen to roughly 80 cents a pound today from about $2.20 in mid-2007. Other dairy products have declined as well. Whole milk at grocers has not declined as rapidly as wholesale powdered milk, but it has dropped to $3.67 a gallon, down nearly 6 percent from the peak.Funny how despite a 60% drop in the price of materials, formula prices haven't dropped a bit.
Well they have to account for the rise in the price of melamine somehow. ;)