Wholesale milk prices to increase, says leading dairy

Wholesale milk prices for retailers have increased by 4.8 per cent due to increased costs for other supplies used in the dairy’s production processes, UK’s leading daily stated recently.

According to a BBC report, Guernsey’s farmers are getting a 5.9 per cent increase in the price they get for their milk from this week.

Wholesale milk prices for retailers have increased by 4.8 per cent, which “reflects increased costs for other supplies used in the dairy’s production processes, most notably packaging and other consumables”, the report quoted a statement by Guernsey Dairy.

Since retailers are also paying more, consumers could see a rise in prices as well, said Guernsey Dairy.

The rises, which started on 2 January, reflects “significant increases in the cost of feed, fertiliser, and other farm essentials”, said Guernsey Dairy, declining to say how much farmers get per litre but milk retails at about £1.40 a litre in the island.

Managing director Andrew Tabel said it “will be for milk distributors and retail outlets to decide whether to absorb the increase, in part or in full, or pass it on to their customers”.

Average UK milk price has risen 3p/litre in two years to reach a seven-year high. Cost inflation is reported to be one of the big issues across agriculture in 2022 and dairying will be no exception, with higher costs set to outstrip recent price rises and reduce margins across the board.