Milk, butter, yogurt and cream have risen in price in recent years, along with other foodstuffs.
The news that food prices are no longer rising at the same furious pace as before came earlier this week. This is shown by a price survey from the Pensioners’ National Organization, PRO.
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Among the goods that have been worst affected by the price increases are a lot of basic goods, including dairy products.
– It’s coffee, cocoa, chocolate, olive oil, milk. It’s stuff that everyone buys and has in their fridges, said Ola Nilssonexpert in consumer affairs at PRO to TT.
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Arla: No price reduction on dairy products
At the same time, one of the largest producers of dairy products in the Nordics, Arla Foods, gives gloomy news. Thomas Carstensenhead of commodity trading at Arla Foods, sees no price reduction in the near future.
– There is no quick fix, he tells the Danish newspaper Financialaccording to BT
In other words, it will take time before dairy products can return to the prices they were before the increase.
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Arla Foods dairy in Falkenberg. Photo: Johan Valkonen/Stella Pictures. That’s why food products remain expensive
According to BT, the demand for milk has long exceeded the supply and due to the economic uncertainties that prevail in the industry, there have been few farmers who have dared to invest in a larger scale production. Because of this, it may take several years before the price of milk and cheese falls.
The problem is not unique to Denmark and the Nordic countries, but the demand also globally exceeds the supply of dairy products, reports the newspaper.
There is also a great demand for milk and dairy products in Sweden.
– We need more Swedish milk, both to secure the food supply at home and to help feed the world’s rapidly growing population. At the same time, it must be produced sustainably, which costs money and the farmers cannot pay for it themselves, says August Brommare Magneforspress contact at Arla Foods, to News24.
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Then things can turn around – in Sweden
The reason is largely the same as that behind the meat shortage. If this has Mats Heljestrandwho is category manager meat at Ica, said that it is due to a lack of farmers of the younger generation.
– We have had a natural departure in terms of older farmers, but have perhaps not seen the same willingness to invest among the younger ones as we would have needed because we have been in a recession with high costs and an uncertain situation, he has said in a previous interview with Nyheter24.
But Arla in Sweden has seen the opposite trend. August Brommare Magnefors recognizes what has happened in Denmark but believes that the last two years have seen a turnaround.
– In Sweden, in the last two years we have welcomed several start-up milk entrepreneurs into the cooperative, and we notice that there is greater faith in the future within the industry. After a few years where the trend was the opposite, it is a very positive development.
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