Like many commodities, Butter is sold on the Chicago Mercantile Exchange each trading day. The price of butter is determined by typical supply and demand of the market place. These prices determine the base price for a pound of butter before manufacturing, packaging, distribution, and retailer margins. In the past few years, commodity prices have been higher than historical levels; this includes Butter and also Feed for Cows; so the price for a pound of butter is higher and the cost for dairy farmers to care for their cows is also higher. Overall number of dairy farms is decreasing due to the rising costs of caring for the cows and inability to cover these costs even though butter prices are higher.