Cheese prices 'to rise by 30%'

By Michelle Perrett

- Last updated on GMT

Cheese prices 'to rise by 30%'

Related tags: Milk

Cheese prices are set to spiral by up to 30% due to an increased demand from Europe and currency fluctuations, warns purchasing company, Beacon. 

It said the move was “worrying for the food and drink industry.”

Beacon said that the price of milk is also hovering at around 27ppl, an increase of 35% on the same period last year while the price of butter is also experiencing a surge of over 100%.

The reason for the higher prices is the “significant increase” in demand for more non-traditional products such as cream, butter, cheese curd and mozzarella.

“As a result of increased desire for younger dairy products, and varying currency fluctuations, dairy manufacturers are really beginning to feel the hit," said Paul Connelly, managing director, Beacon.

"Many manufacturers and suppliers have absorbed price increases for some time, but this is no longer possible.

“The impact of this is now being felt in the UK, with cheese manufacturers pushing prices beyond those experienced in the last quarter of 2016, with forecasters indicating that they are set to remain high for quarters three and four of 2017.” 

Alice Bexon, purchasing manager at Beacon, added: “The price increases that we are experiencing in the dairy market can be seen as worrying for the food and drink industry, however we are currently working with our suppliers and customers to ensure that these rises are controlled and managed in the marketplace in order to cause as little disruption as possible.”

Last month,  Beacon Purchasing urged the Government to give clarity to businesses a year on from the Brexit vote. It said the uncertain future of migrant workers, rising prices and the threat of a consumer spending slowdown were all combining to make business as normal incredibly difficult. This was threatening the future prosperity of the UK food and drink market.

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