The dairy market is facing substantial price increases, with the price of cheese surging by up to 30% in some cases, according to purchasing company, Beacon. This comes as a result of an increased European demand for young dairy products such as butter and mozzarella, as well as impacts from recent currency fluctuations. This is resulting in price hikes of commodity cheeses by up to 30%.
The price of milk is also hovering at around 27ppl, an increase of 35% on the same period last year, as supplies dwindle to their lowest volume since May 2017. The price of butter is also experiencing a surge, surpassing a tremendous 100% rise. The higher prices correspond to a significant increase in demand for young dairy products amongst consumers, such as cream, butter, cheese curd and mozzarella, outweighing some of the more traditional products.
Paul Connelly, Beacon MD, commented: “As a result of increased desire for younger dairy products, and varying currency fluctuations, dairy manufacturers are really beginning to feel the hit. Many manufacturers and suppliers have absorbed price increases for some time, but this is no longer possible. The impact of this is now being felt in the UK, with cheese manufacturers pushing prices beyond those experienced in the last quarter of 2016, with forecasters indicating that they are set to remain high for quarters three and four of 2017. For the foreseeable future, cheese lovers should prepare to pay more for their favourite dairy products.”
Alice Bexon, Purchasing Manager at Beacon, continued: “The price increases that we are experiencing in the dairy market can be seen as worrying for the food and drink industry, however we are currently working with our suppliers and customers to ensure that these rises are controlled and managed in the marketplace in order to cause as little disruption as possible.”