The liter price of milk will rise by almost 11 percent, or approximately ISK 10 (USD 0.09, EUR 0.07), on November 1, according to a decision made by the Pricing Committee of Agricultural Products.
The decision was made because of rising prices of resources in the milk industry and increasing costs of agricultural production, Morgunbladid reports.
“Farmers are content, although the price of resources such as fertilizer, plastic and concentrated feed has risen by 50 to 80 percent in addition to general pricing development and is a major item of expenditure in the operation of dairy farms,” said Haraldur Benediktsson, chairman of the Farmers Association of Iceland, in reference to the increase in milk prices.
“Icelandic milk remains less expensive than in most of our neighboring countries,” Haraldsson added.
According to the Association of Icelandic Dairy and Beef Cattle Farmers, the sale of dairy products have been successful lately with an 8.3 percent increase in the sale of fresh dairy products in September 2008 compared to the same month last year.
The sale of cheeses increased even more, by 11.2 percent in September this year compared to September 2007.