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Fresh milk prices set to rise October 5, 2007

Posted by grhomeboy in Business & Economy, Food Greece, Living, Shopping.
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Consumers will have to pay more for their fresh milk from next week as its price is expected to rise by up to 4.5 percent.

This is the second price increase this year and was predictable after the repeated hikes in the last few months across all categories of dairy products, in turn due to the rapid rise in wheat and animal food prices.

The sector’s top company, Vivartia, has already notified retailers about the new prices to take effect from Monday, October 8. The wholesale price, before value-added tax, of half a liter of fresh milk rises by 4.5 percent to 70 euro cents from 0.67, the price of a liter climbs by 4.2 percent from 1.18 to 1.23 and the price of two liters goes up by 4 percent, from 2.25 to 2.34. If we add VAT, then a liter will cost 1.34 from 1.29 today.

The prices of low-fat and no-fat milk will also increase, by 4.5 percent and 4 percent respectively. Just as with fresh milk, prices change according to the quantity in each package. It is only in the last couple of years that the prices of these two categories have been on a par with whole milk, as previously they were sold at prices 3-5 percent higher. These have now gone down mainly for marketing reasons, according to market professionals.

In the next few days, the new tariffs of the other firms in the sector are expected, as in most cases the majority of companies wait for the market leader to act first and then make their move.

The first price hike this year had been at the start of 2007, amounting to about 2.6 to 3 percent. According to available data for the 2004-2007 period, the already high price of fresh milk has increased by 14.16 to 18.52 percent. The question now is whether private-label fresh milk can maintain its current price, which is the lowest in the market.

From this month, a series of other dairy products will also see increases, such as a 5.6 percent hike for concentrated milk, a 10.8 percent rise for high-pasteurization milk, up to 6 percent for yogurt and up to 2.6 percent for children’s food and milk. Price rises in cheese products have reached 15 percent.

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Comments

1. gardener432 - October 6, 2007

Isn’t there a hormone thats to be outlawed soon that would cut Idono how to say this’ the cows or the producer yeild by 5-6% ?


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