A recent increase in the price of animal feed may mean higher prices for milk, according to a Penn State professor's report.

The report, called "Dairy Outlook," said the price of milk and other dairy products such as butter and cheese are expected to rise nearly 30 cents by October of this year.

Compiled by Ken Bailey, associate professor of agricultural economics at Penn State, the report indicated one reason for such an increase is the high price of corn and soybeans, used to feed milk-producing cows.

The increase in corn and soybeans is a result of the high demand of these crops for ethanol production. This will also "aggravate already existing poor cash flow conditions" and result in lower milk yields per cow, according to the report.

The effects of this increase are being felt at Penn State. Virginia Ishler, dairy complex manager at Penn State, said the cost to feed one cow has gone up 50 cents per day, which ultimately narrows the margin of profit for their milk.

"Our cows are doing as good if not better [than previous years], but it's costing us more to feed them," Ishler said.

Lisa Wandel, associate director of Food Services, said the price increase would not affect the cost of a meal for students in the dining commons.

Another issue Ishler cited was 2006 being one of the worst years financially in the milk industry.

"Even though prices are going up, it's not enough to make up for 2006, when milk prices were far too low," Ishler added.

So far, the milk production is better this year than last, but the profit margin is much lower, according to Ishler.

Tom Palchak, manager of Berkey Creamery, said the store has had some cost increases for dairy products. He also said even though prices are going up across the state and region, the Creamery doesn't anticipate raising prices again this year.

"We try to hold off on price increases that affect students as much as possible ... Mainly, the increases are on controlled items like large milk-dispensing products used in the dining commons," Palchak said.

Roommates Nick Miele (sophomore-information sciences and technology) and Andrew Seitz (sophomore-finance) said they drink between five and six gallons of milk a week, and even if prices increase significantly, they would be hesistant to cut back.

"There's no other way to eat cereal," Miele said.