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Prices are set to rise on January 1

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Creamery boss Findlay Macleod has said huge increases in costs for farmers is the driving force behind a third milk price increase in 12 months.

Prices are set to rise on January 1, having previously gone up in April and August this year.

Form the new year, a 500ml carton of milk will cost 80p, a one litre carton will cost £1.45 and a 1.75 litre carton will cost £2.30.

Speaking to Gef, Findlay said: ‘This year has been particularly hard for both individuals and businesses operating in these uncertain times. Operating costs throughout the dairy industry have increased significantly which has had a major impact on our business. 

‘On farm there have been huge increases in the cost of producing milk, from fertilizer and feed to fuel and power. The compound effect of these rises over the year has resulted in increased pressure on our farmer producers. As a cooperative of dairy farmers it is vital that the Creamery is able to pay a fair price to the farmers for their milk which takes all of these pressures into account. This is the only way that we can keep their businesses and the local dairy industry viable and operating successfully. 

‘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 Milk Prices Order to ensure a trusted and safe local milk and dairy supply. This small increase to the cost of milk will help all local suppliers and the wider dairy industry navigate these extremely trying times.

He also thanks the creamery’s ‘loyal customers’.

This price increase applies to all liquid milk that is produced and sold on island both in-store and through a doorstep delivery service.

The retail price of milk is controlled by the Milk Prices Order 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 NFU and is chaired by DEFA Minister Clare Barber.