Milk price goes up (again)
Milk prices are now increasing for the third time in just over six months.
In November, the price of a milk carton went up by DKK 0.20, and a further 4.5 percent was added to the price at the time of Russia’s invasion of Ukraine in February.
And now, a significantly higher price hike of about 10-11 percent is on the horizon.
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“Production costs, including oil and fertilisers, have been increasing since late last year, and they have risen dramatically in the past few months,” says Hákun Steingrímsson, CEO of dairy company MBM.
It is not only the current instability in international markets that is to blame for this new price hike. Recent wage increases set by various Faroese trade unions also contribute to the higher production costs.
“These are just some of the many factors that negatively affect our production.” Steingrímsson is, however, not overly concerned that the higher prices will lead to a major increase in imported milk.
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“Many of our overseas competitors have had to raise their prices even more than we have.”
He cannot say when prices will start to fall again, and he is reluctant to enter the discussion of possible state subsidies to help lower the cost of dairy products.
“The government has said it is not planning to introduce subsidies, so we need to find a way to navigate this situation as best we can.”
Read the Faroese version of this article here.
More Faroese News in English.