The price of wholesale milk and dairy products was raised 4.86% on September 1, RÚV reports. The price increase was put into effect by the Livestock Pricing Committee appointed by the Ministry of Industry and Innovation.
Increasing the price of wholesale dairy will, of course, affect prices at the consumer level. The price of butter, for instance, will go up by 15%. Mbl.is notes that the price for a liter of milk will increase by 4.8% (6 krónur), bringing it to ISK 132 ($1.23/€1.06) per litre.
The increase will undoubtedly be welcomed by dairy farmers, who will now be able to sell milk at a minimum increase of 3.52%. This increases their sale price from a minimum of ISK 87.40 to ISK 90.48.
The last price change to dairy products was made on January 1, 2017 as a result of rising milk production and processing costs. Since then, it’s been calculated that the dairy farmer’s production and distribution costs have increased by 7.14%.
The price increase was opposed by a representative of the Minister of Social Affairs and Equality but was unanimously approved by the remaining five members of the pricing committee.