Arla Foods prices to soar as rocketing production costs continue

Britains biggest dairy producer, Arla Foods, has revealed the price of milk will continue to rise as a result of sky-high energy prices, which have already increased by 200%.

Speaking to Sky News, Arla Foods chief commercial officer Peter Giortz-Carlson attributed the higher costs to the war in Ukraine.

The parent company of Lurpak butter, Skyr yoghurt and Cravendale milk added that packaging and feed costs have also increased as much as 40%.

Giortz-Carlson said in his 20 years in the industry, he has “never seen anything like” this, adding that he believes the industry hasn’t “seen the top” of food prices just yet.

READ MORE: Arla Foods warns milk supplies running low as farmers underpaid

This comes as the Office for National Statistics (ONS) revealed Consumer Prices Index inflation increased to 9% in the year to April, up from an already high 7% in March.

Arla’s chief commercial officer warned that milk farmers are currently making a loss on their farms, as a result to rising costs of fertiliser, feed and energy.

Giortz-Carlson said the firm’s “main job here is to keep the products flowing, and make sure that there is a supply of food on the shelves.” However, raised concerns that higher prices are here to stay for some time.

According to Giortz-Carlson, 50% of the usual level of feed is expected to be imported from Ukraine.

Commenting on the rising prices of fertiliser as well its availability, he said”this is a very tough storm that we’re in and it’s across from all sides and our role in this is to keep the products flowing”.

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