The cost of milk is to increase from August 1 (Monday) as the cost of production continues to soar.

This is the second increase this year. In April a 500ml carton rose from 60p to 65p, while a litre carton went up by 10p to £1.15.

Under the amendment to the Milk Price Order, the price of a 500ml carton will rise to 75p, a litre carton will rise to £1.35 and a 1.75 litre carton is going up to £2.15.

The retail price of milk on the island is controlled by the MPO which aims to give consumers a reliable supply of fresh, local cow’s milk at a reasonable price. The MPO and milk price is set by the Isle of Man Milk Marketing Committee which includes lay members from the OFT, representatives of the National Farmers Union and is chaired by DEFA Minister Clare Barber.

Managing Director, Findlay Macleod said: ‘We are all living and operating in unprecedented times. Significant world events have greatly impacted the costs we are facing in both the farming and manufacturing and processing elements of our business.

‘Farmers have seen the cost of producing a litre of milk rise by 60% so far this year. There have been huge increases in the cost of feed, fertilizer, fuel and power and in order to cover these costs Isle of Man Creamery (the cooperative) needs to pay the farmers more for each litre of milk they produce in order for them to keep their businesses and the industry operating. As a farmers cooperative, the dairy farmers that supply Isle of Man Creamery with milk directly benefit from any price increases on our products.

‘In addition to the increased costs for farmers, the processing of milk is also increasing in cost from packaging, power and fuel to staffing costs. These combined additional costs have resulted in the need for a review of the MPO to help keep the dairy industry on the Island viable and ensure a trusted and safe local milk and dairy supply.’

Mr Macleod added that the increase will ‘help all local milk suppliers and the wider dairy industry navigate these extremely trying times’. He also thanked customers for their continued support.