Kraft chief executive Irene Rosenfeld recently warned of a possible drop in milk consumption as soaring milk prices cause consumers to eat and drink fewer dairy products.

“2007 is shaping up to have the highest average dairy prices on record,” Rosenfeld told The New York Times. “The high cost of milk is beginning to slow consumption.”

Around half the milk consumed in the U.S. is done so in the form of cheese, according to the National Milk Producers Federation. Around 30 per cent is consumed in the form of liquid milk.

Kraft has been raising prices on its cheese products, which include Kraft Singles and Philadelphia Cream Cheese, between 5 and 12% this year to try and offset falling sales and higher raw material costs.