July 18, 2007

 

EU milk prices vary widely within the region

 

 

Milk and cheese products can be twice as expensive in some countries in Western Europe than those in Eastern Europe, according to a Eurostat report last week.

 

The report suggests that despite a common currency, a wide gap still exists between the prices of such products in the region.

 

In 2006, milk and cheese prices varied up to 72 per cent depending on the country, the report states.

 

The most expensive country for milk and cheese is Cyprus, where such products cost 39 per cent more than the EU27 average, followed by Greece, where it is 38 percent more.

 

The countries with the cheapest prices for milk and cheese are all in Eastern Europe.

 

In Poland, milk is 33 percent than the average and in countries like Latvia, Lithuania and Slovakia, prices are 25 percent less.

 

Meanwhie, dairy products in Norway were 60 percent higher than the EU27 average, and 93 percent higher than prices in Poland.

 

Milk and cheese prices are expected to rise all across Europe as the region tries to meet increases in demand amidst falling supply.

 

In an interview with Dairy Reporter, Joop Kleibeuker, the head of the European Dairy Association (EDA), said prices on the international dairy market are at a "historically high level, reaching above US$400/100kg.

 

Rising prices have prompted the EU last week to withdraw subsidies on all exported dairy products for the first time in 40 years.

 

The Eurostat survey, carried out last month, compared the cost of food, beverages and tobacco in 37 participating countries in 2006.