Given the continuing concern by both consumers and farm groups as to the relationship between farm and retail milk prices and recent dramatic increases in milk prices, this paper updates the previous results obtained by Jesse (2003) by using data encompassing Jan. 2003 through May 2007. We also use an improved method to quantify the relationship between farm and retail milk prices. With this new data and methodology we find much more of a statistical relationship between retail and farm-level milk prices than found previously.