Experts warn that the cost of dairy products like milk and cheese could skyrocket as farmers have no choice but to pass on their own rising bills to buyers
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The cost of milk could soon rise by more than 50%, experts warn – meaning Britons could soon be paying 80p instead of 60p for a pint.
Experts say it was blamed on a “tsunami” of rising agricultural costs steep climbs in fuel, fertilizer and animal feed.
A lot of it is on the ongoing war started by Russia against Ukraine.
The result is that the price of four pints of milk could rise from £1.15 to between £1.60 and £1.70, according to UK dairy consultants Kite Consulting.
A typical pack of butter could go from £1.55 to over £2.
Kite Consulting’s John Allen said milk prices had been low for 30 years and that was “ending”. The Telegraph reported .
He added: “What’s worrying right now is that processors are also getting inflationary costs and we’re running out of milk around the world.”
Milk bosses from the UK and Europe all traveled to Brussels last week for urgent talks on the price of milk.
Last month The Mirror reported that the price of groceries in the supermarket was fixed at rise even further because of the Russian invasion of Ukraine.
Canned goods and sunflower oil are set to rise in price, but all supermarket goods could also rise due to rising petrol and fertilizer prices.
Even before the war, supermarket shoppers were being warned to prepare for a yearbook Grocery bill increase by around £180 as the cost of living crisis squeezed households.
But the Russian invasion of Ukraine threatens to increase food bills even further – although we are only just beginning to see the warning signs.
According to the Agricultural Market Information System, which monitors food security in the G20 countries, Ukraine and Russia together produce about 30% of world wheat exports.
The Russian invasion of Ukraine threatens to cut off supplies of these vital supplies.
According to government figures for 2021, the average Briton gets around 30% of their calories from grains like wheat.
Luckily, the UK is “largely self-sufficient” when it comes to grain, according to a government report last year. We grow around 90% of the wheat we eat each year, so shortages are unlikely.
But much of that growth depends on fertilisers, and the UK imports 40% of what we use – £735m of that in 2020 alone.
Fertilizer prices are already moving towards £1,000 a tonne, up from £650 last week.
This is due to the high cost of gas, which is critical to its manufacture.
The National Farmers’ Union said nitrogen fertilizer costs have doubled from last year.
Russia is the second largest crude oil producer in the world.
It supplies a third of Europe’s oil, raising fears that supplies may be limited due to the conflict with Ukraine.
Rising oil prices will increase the cost of growing and harvesting food and transporting it to stores.
https://www.mirror.co.uk/money/milk-prices-could-hit-80p-26630241 Milk prices could hit 80p a pint after a 'tsunami' of cost increases across the UK