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Explainer: Why milk prices are high and how the market works

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Molly Maasz worked milking cows.
Molly Maasz worked milking cows at the Hoffman farm in rural New Ulm, Minn.
File | Jackson Forderer for MPR News

The Minnesota State Fair announced this week that for the first time in more than a decade, all-you-can-drink milk at the State Fair will be more expensive this year. In fact, twice as expensive, $2 rather than $1.

But, the concern over milk prices, both from customers and farmers, extends far beyond the fairgrounds this summer. A precipitous drop in the farm price of milk since last fall has dairy farmers struggling to meet their bottom line. We seek an explanation for why milk prices are down, and what that means for farmers and consumers.