Home

>

Blog

>

NEWS: Butter and Cheese Shortages - Equals further price rise

NEWS: Butter and Cheese Shortages - Equals further price rise

RSS Feed

March 2, 2017

NEWS: Butter and Cheese Shortages - Equals further price rise
As you may be aware, the Australian milk production in 2016/17 has been severely impacted by depressed commodity prices reflected on a reduced farmgate price and an unseasonably wet Spring in the southern states that further constrained milk production.

Dairy Australia's figures indicated that Australian Milk production declined approximately 190 million litres, or 2.0%, to 9.54 billion litres in 2015/16. This had led to less production of butter and cheese and strong increases in commodity prices. Since July 2016, commodity prices have risen significantly:
  • Butter - 40%
  • Cheddar - 20%
  • Mozzarella - 23%
In response to the continuous rising commodity prices, Australian cheese and butter producers will need to make further price rise - which is forecasted to start in April at an average increase of 5%.

How will this affect you?
As milk supply is unlikely to recover until our next Spring (October 2017), this price rise and shortages will affect every relevant market i.e. retail, wholesalers, food service, etc. 

What can Pronto Fine Foods do to soften the effect of the rising commodity prices and dairy product shortages?
We are in the middle of investigating another option to counteract butter and cheese shortages. This option is to source butter and cheese from Italy.

If we are to be successful, would you (being our valued client) be open to purchasing Italian butter and cheese from us in order to decrease the chance of running out?

We would love your feedback by emailing us on marketing@prontofinefoods.com.au


Source:
Dairy Australia: http://www.dairyaustralia.com.au/Markets-and-statistics/Production-and-sales/Milk.aspx
Cheese and Butter Producers