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It always amazes me how cheap milk is. Would anyone stop buying it if it was twice the price? I wouldn't.
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I had exactly the same question some time ago to the local farmer from whom we buy our milk and he told me that actually there's less demand as the Swiss are apparently drinking less. However, these dairy farmers are somewhat stuck with their cows and supply seem to be pretty static and are driving prices down simply due to oversupply. I have no figures to back this up, just the story of the local guy which does look credible