Gene Carrejo is the general manager of Prices Creameries in Central El Paso. He said, "There is a 27 cent increase in July. We have already seen 46 cents since January."

The price increase is bad news for consumers. It is especially bad news for Edward Davis. He is the owner of Cappetto's Restaurant in Central El Paso.

"We received our notice from Prices today about the price increase. We are paying double the price for pizza cheese as we were a year ago," Davis said.

Cappetto's uses about 400 to 500 pounds of cheese a week.

The biggest factor in the price increase is lack of supply and the large demand. This is in addition to the already high cost of fuel and the cost of animal feed.

"I think it is a really scary situation going forward because I don't think milk is ever going to come back down to as low as we saw it six or eight months ago," Carrejo said.

Even if the price of milk gets up to $4.59 a gallon. Each serving of milk will be only 29 cents.