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It is fair to say that the dairy supply chain has not seen inflationary cost pressures of the magnitude being witnessed today for many years, if ever. They are ubiquitous across every aspect of the supply chain – from primary farm inputs; to the price of fuel and labour to take the milk from the farm to the dairy; through the processing procedures within the factory; to packaging materials; storage and maturation; and the final transport to the end consumer – be it here or abroad.

This report assesses some of the cost price challenges that farmers and processors are facing, and what processors are saying about the situation. It has been compiled by Kite Consulting, the agribusiness consultancy specialising in the dairy industry, and Chris Walkland, a leading market analyst in the dairy industry. It also draws on the facts, sentiment and commentary in separate contributory reports by:

• CRM AgriCommodities, on the long-term grain prospects;
• Campbell Gibbons on Future EU Agricultural Policy;
• Kite Consulting’s Cost of Production Report September 2021.

Read the full report here 

Read the Beyond Reset report here with updated information as of February 2022