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Price increases to be implemented (Ongoing).
This web page has been designed with all our customers in mind. It will enable you to keep track of the unpredictable and volatile prices in the dairy market. We would send notification of price increases via letter but as we are going to be affected on a wide scale due to our extensive product range we will keep you notified on this page. We will, no doubt, be receiving notifications of price increases daily over the next few weeks and to collate these and notify you by letter would not give you maximum notice. Please find below our ongoing wave of increases. If you need to clarify any issues, please contact Telesales or your sales rep.
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| Product Affected |
Date of Increase |
Percentage of Increase |
| As prices seem to have settled down, we will now be notify customers by letter and by stapling information on invoices. |
As from 07/04/08 |
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Page last updated
02-Apr-2008
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Price increase statement:-
As you may be aware, world dairy commodity prices have been rising at an unprecedented rate in recent months. In the past 4 to 6 weeks these increases have accelerated to such an extent that we now find ourselves with no option but to increase supply pricing across many product categories.
The upward trend in Skim Milk Powder and related dairy ingredient prices are a reflection that the growth in world demand is not being matched by an increase in world production. There are a number of key factors responsible for this:-
- Market prices for butter and milk powders have increased by 30.75% over the past 6 months. As a consequence, prices paid to farmers for their milk have increased significantly during the past 8 weeks.
- Global food commodities are increasing in demand due to an increase in per capita protein consumption.
- The UK, France and Germany were all under their milk quota in 2006 and 2007, and EU milk deliveries were down by 0.8% in 2006. The decline in Skim Milk Powder output was particularly severe with a decline of 11%.
- Global intervention stocks, which have been used in times of shortage to maintain prices at reasonable levels in past years, have already been exhausted.
- Australia's milk output is down by 10.9% over the past 4 months due to sustained drought conditions, with a forecast of further decline in production levels due to new drought warnings. Drought in New Zealand and South Africa has weakened their output. Both Australia and New Zealand are major suppliers to China and the Far East markets, but have little or no stock at the end of their milk production season. India has imposed a prohibition on dairy exports to ensure that they can feed the native population. The burden of world supply therefore falls upon the EU and US.
Looking forward, current market analysis suggests that there is little evidence of price relief this year, perhaps until next year.
Click to see an article from The Grocer magazine
"Reprinted by kind permission of The Grocer.
© William Reed Publishing Ltd 2007."
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Link to Previous Price increase archive
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