According to a recent statement by the Ministry of Food, Agriculture, and Fisheries, the average cost of dairy products throughout Iceland is set to increase in the coming year.
As of January 2023, the wholesale price of dairy and dairy products in Iceland will increase by 3.5%.
The cost increase, which sets the price at which milk is bought from dairy farmers, is in response to increases in production costs since the price was last assessed in September of this year.
According to the Ministry, processing and distribution costs have risen by 5.06% in the last year, in addition to a 2.38% increase in livestock fees. Collective agreements have also caused recent increases to the cost of labour, in addition to the generally high inflation currently affecting the Icelandic economy.