Cheese to be a Luxury Item by Christmas

17/07/2007

There may be a shortage of cheese sticks at this year’s office Christmas party. The price of cheese is predicted to soar by the Christmas party season if the cost of milk continues to increase as industry experts expect.

The massive global demand for milk coupled with terrible weather are said to be factors influencing the price increase. The crisis is further exacerbated by a severe drought in Australia, one of the world’s biggest milk producers. An EU policy to reduce milk production among member states has also restricted supply.

It now costs over £2,000 to produce a tonne of cheese in Britain – a £350 increase in the past three months.

Cheese manufacturers predict that by the time cheese lovers are preparing for the Christmas party season the production cost may rise by 40p a pound.

Following four years of stable prices, the increase in the cost of milk and cheese is likely to have a knock-on effect on restaurants and takeaways that serve pizza and other dishes featuring cheese. Italian restaurants are likely to be hit hard, especially as wheat prices are also increasing, making pasta more expensive.

Nigel White, secretary of the British Cheese Board said: “There has been a surge in the price of butter and milk. It’s going to have to ripple through to the cheese market. A lot of cheese prices are based on contracts that are soon going to come to an end.”