Milk futures in Chicago jumped to the highest on record, signaling higher costs for consumers, as exports surge and a record drought threatens output in California, the nation’s top producer.
Shipments of dry-milk ingredients, cheese and butterfat jumped 17 percent to 1.76 million metric tons in the 11 months through November, the latest data from the U.S. Dairy Export Council show. California had its driest year ever in 2013, threatening to slow output per cow, according to INTL FCStone Inc. Futures jumped 16 percent this year, the biggest gain among 64 commodities tracked by Bloomberg. Cheese, up 12 percent, is the second-best performer.
Global dairy prices tracked by the United Nations climbed 28 percent last year, compared with a 3.4 percent decline in overall food costs. The gains in cheese and milk may boost expenses for Darden Restaurants Inc., the operator of Red Lobster and Olive Garden chains, and General Mills Inc., the maker of Yoplait yogurt.
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