The forthcoming plastic tax and higher prices for farmers, hit milk production suppliers making price rises unavoidable as increased costs can no longer be absorbed.
From the 1st of April, the government will introduce a plastic tax of £200/MT on all plastic packaging (where recycled material is less than 30%). One of our dairy partners has informed us that this will add additional costs to their bottles, caps, labels, pergal liners,case, and pallet wraps. In addition, they will also be increasing the milk price to their farmers from April to ensure they secure their milk supplies.
The production costs mentioned above and additional packaging and distribution costs mean they will be increasing their fresh milk prices in plastic containers by 3p per litre from the 3rd of April. Furthermore, fresh milk in cartons will rise by 2p per litre, and glass bottles will increase by 1.25p per litre from the same date.
Similar price rises are happening across the entire milk production sector. For example,companies such as Muller, Arla Foods, and Barber have already announced increases for March. Please be aware that your dairy supplier may contact you soon regarding price moves. Alternatively, you may notice an increase in milk costs from your chosen food wholesaler.