Shortage Of Milk Forces Prices Up As End Looms For Era Of Cheap Food
UK - Consumers face price increases of 3p on a pint of milk because of a shortage caused by the wet weather.
31 July 2007
1 minute read
The threat of high prices was signalled yesterday when First Milk, Britain’s largest dairy cooperative, declared force majeureon August milk prices.
Industry experts immediately said that other milk cooperatives were bound to make a similar warning to customers.
Force majeure is invoked only when circumstances beyond the control of a supplier prevent the terms of a contract being fulfilled.
Leading dairy companies claim that milk supplies are already 10 per cent down because persistent rainfall has forced farmers to keep cattle indoors, which reduces milk yield.
July production figures are to be published shortly, and it is possible that the decline may be more marked.
Source: Times Online
