Dairy Groups Forced To Face Climate Change Responsibility
UK - Major players within the dairy industry are beginning to witness unwanted reminders of the high cost climate change could have on their operations, as prices for raw materials like milk continue to soar.
13 June 2007
1 minute read
Over the last year in the UK alone, the price of wholesale milk has doubled, while the value of cream has also shot by 23 per cent, according to figures by the national milk council.
These increases are mirrored in supply chains across the world with the typical price in Australia of skimmed milk powder, a major ingredient in dairy processing, rising during the last 12 months from AUS$2,000 (€1,262) per tonne to AUS$4,800 (€3,030) per tonne.
So drastic have these rises been that Arla foods, a major Scandinavian dairy group last week announced it was no longer producing emmental cheese in order to focus on more profitable products like mozzarella and milk powder.
While increased demand, particularly form emerging markets like Asia and Eastern Europe is undoubtedly playing a role in this price change, ongoing drought within the agricultural heartlands of Australia has compounded the problem.
Australia, which is one of the world's most important suppliers of dairy products, has seen demand tighten as drought continues to cripple the supply from its major production regions.
