The cost of milk is set to rise, UK's leading adviser to dairy farmers has predicted, as dairy industry is likely to pass on higher feed and fertiliser costs arising from Ukraine crisis.
According to Kite Consulting, the UK’s leading adviser to dairy farmers, the cost of four pints of milk will jump from around £1.15 to between £1.60 and £1.70, an increase of up to 50pc.
During a recently-held crisis talks of dairy farmers held in Brussels over soaring costs and supply chain disruption, Michael Oakes, the dairy board chair of the National Farmers’ Union, agreed with Kite Consulting’s warning that milk prices will likely rise by as much as 50pc.
Stating that 30-year period of low milk price rises is “coming to an end now”, John Allen from Kite Consulting added that the price of typical pack of butter will also rise from £1.55 to more than £2.
“What is of concern at present is processors are getting inflationary costs as well and also we are short of milk around the world,” The Telegraph quoted Allen as saying.
The talks were attended by dairy industry bosses from the UK and elsewhere in Europe who flew into Brussels at the end of last week with talks led by Eucolait, the continent’s leading dairy industry group.
UK dairy industry bosses have raised concerns over their costs to the government, but officials at the Department for Environment, Food and Rural Affairs (Defra) are said to be merely in “listening mode”, report said.
The dairy industry is likely to pass on higher costs from the Ukraine crisis disrupting fuel, fertiliser and feed prices, with both farmers and processors squeezed.
This follows a warning from British Egg Industry Council (BEIC) who said consumers could see egg shortages within “a matter of weeks” unless retailers raise prices to cover rapidly increasing production costs.
The industry body warned that customers were likely to see shortages without urgent action.
It predicted 10 per cent to 15 per cent of farmers could leave the industry, with many on the brink of bankruptcy due to the unprecedented rises in the cost of production.
