• Sweden edition
 

Milk price hike to save dairy farmers

Published: 31 Aug 2009 14:04 GMT+02:00
Updated: 31 Aug 2009 14:04 GMT+02:00

Dairy company Milko will raise the price of milk next week by one krona per litre ($0.14), with all of the increase going to dairy farmers, say Milko’s chairman Per Åsling and CEO Erik Gumabon, writing in the Dagens Nyheter newspaper.

The reason for the price increase is that a falling world market price has led to a serious reduction in income for dairy farmers. Many dairy farmers have folded, and in just one year Sweden has lost the production of 8,800 dairy cows.

European dairy companies’ payments to dairy farmers have fallen around 31 percent since the end of 2007, say Milko’s management.

The price rise that Milko will institute is estimated to return dairy farmers an extra eight percent in income every month. The four largest Swedish food chains – ICA, Coop, Axfood and Bergendahls – accepted the price increase this summer, according to news agency TT.

Milko has released an opinion poll that shows that 9 out of every 10 customers are prepared to pay one krona more for a litre of milk if the price increase goes entirely to dairy farmers.

Around 850 farmers – in Dalarna, Härjedalen, Hälsingland, Jämtland, Ångermanland, Medelpad, Värmland, north Dalsland and north Västmanland – deliver their milk to Milko.

Meanwhile, wholesale milk purchaser Skånemejerier (Skåne Dairies) will pay dairy farmers 20 öre ($0.03) more for each kilogram of milk from 2010.

The additional price that Skåne Dairies will pay to farmers is being labelled a "market supplement", and is a direct result of attempts by Skåne Dairies over recent months to increase their sales and take back market share. The market supplement will cut directly into Skåne Dairies’ profits and will not involve raising prices in shops, according to Björn Sederberg, Skåne Dairies’ CEO.

“We want to send a long-sighted signal to farmers, but it’s still not enough,” said Sederberg.

After the price rise, Skåne Dairies will pay an extra 2.79 kronor per litre to dairy farmers. “Farmers need to get an extra three kronor per litre in order to remain viable,” Sederberg added.

Around 625 dairy farmers deliver milk to Skåne Dairies.

TT/Stuart Roberts (news@thelocal.se)

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Your comments about this article

22:38 August 31, 2009 by lingonberrie
Don't allow the monied globolists to introduce American factory inhumane plastic farming to Sweden.

The price hike is modest and will go a long way in retaining the superior milk and dairy products that Swedish farmers produce, and towards saving Swedish dairy farms.

Sweden still retains the old tradition of delivery, and drinking milk from glass containers is a plus.
15:12 September 1, 2009 by ironman294
lingonberrie, what's wrong? Have no substance or heft to any point, so you have to slam America? You mean North America or South America?

Since you Euro's love to say people in te US shouldn't be allowed to say American because American means North and South.

I guess one thing us United States Folks have is pride and size and identity, we don't need to cling to other rinky dink countries in Europe and say we are European! Rather than Swedish or Norwegian. It is quite sad really. I mean really you chastise us Americans for being patriotic and nationialistic, what does it say to you when you cling to your Continent and don't allow Turkey into the EU because of the color of their skin and Religion? You are racist and bigots!

Jag Alska Sverige, but not because of dummies like you.
18:47 September 1, 2009 by lingonberrie
Amazing how the radicals without a grain of common sense crawl out of the wood-work to spout their mindless nonsense.

Consider that Sweden has not made war on another nation for centuries, whereas the United States of America has made war, continues to make war, and now has two wars and is looking for a third in Pakistan.

They export Depressions, torture as a matter of policy, and overthrow legitimate governments. Yes, pride. Their veterans languish on the streets or wait for years for proper medical attention.

Consider how you have twice voted into office a moron without a grain of compassion for anyone in the Middle-East or for those not of his wealth-obsessed Republican ilk in the United States. Consider nixon, reagan, bush, bushcheney, and that cabal of neocons in your government. Pride.

You have pride in that as well, and your oversized SUVs and pick-up trucks and your use of one fifth of the world's oil, and as one of the biggest polluters in the world. Your military uses more oil than the entire country of Sweden.
20:49 September 1, 2009 by mkvgtired
Please reread you last post. The article was about a 1SKR increase in the price of milk. You turned it into a hate filled anti-American rant. You, my friend, need to find a healthy outlet for your anger.
15:25 September 2, 2009 by peropaco
As a lactose intolerant chap; I could care less if the price of milk goes up 10 fold. I hate milk and all dairy products;-))
15:51 September 2, 2009 by ironman294
lingonberrie, I don't know where you get your facts from about the US Military. If we do use more so what?

If Oil was half the price in Sverige you might use more

The US Military has over 1 million enlisted. Sweden has 9 million people, many people don' drive in Sweden. But since the US military makes up most of NATO forces, becaus ethe rest of Nato won't use their troops fro any engagement in large numbers save for Britain, and Canada what do you expect? Someone has to keep the world safe.

Sverige has many good qualities, like their music, movies, costumes and Women, but their worst is feelings towards Jews and Americans. Though I shouldn't single out Sweden for their Anti-Semitism, though it is shocking the government save for Ambassador to Israel will not condemn in any way the Blood Libel. Many in Europe would probably believe this story anyway.

You could have left your comment to be just a criticism of Milk prices going up, but did yo not think an American would read news about Sverige?

Jag kan lasa svensk och första svensk ocksa :-P. There goes the stereotype of Americans only speaking or knowing one language. Swedish would make that 4 languages for me.
14:27 September 3, 2009 by Moshe
"Don't allow the monied globolists to introduce American factory inhumane plastic farming to Sweden."

You just keep on slamming America (US). We like it very much.

I bet most Americans drink their milk from glass containers. Everyday, I pour my milk which is in a plastic container and I pour the milk into a 8oz glass container.
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