Price of Milk Increases by 14.6 Percent Skip to content

Price of Milk Increases by 14.6 Percent

The pricing committee of agricultural products has decided to increase the wholesale price of milk by 14.6 percent, effective April 1. One liter of milk will then cost around ISK 100 (USD 1.32, EUR 0.83).

Dairy farmers will receive ISK 64 (USD 0.84, EUR 0.53) thereof, up by ISK 14 (USD 0.18, EUR 0.12) for every liter of milk sold, 24 Stundir reports.

The committee says that the reason for this price increase is rising production costs for farmers, especially fertilizers and concentrated feed, as well as a higher cost of capital due to higher interest rates.

“It is not fun to be forced to increase the price of milk so much,” said chairman of the Farmers Association Haraldur Benediktsson. “But I’d like to point out that in the last few years the price of milk has not risen significantly compared to pricing in general.”

Benediktsson explained that for the past 15 years the price of milk has only risen by 40 percent while the average price of food products has risen by nearly 90 percent.

According to CEO of Mjólkursamsalan (MS) Magnús Ólafsson, Iceland’s largest dairy company, the price of other dairy products will increase in accordance with the decision of the pricing committee on April 1.

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