Italian Milk Prices Increased by 55% YoY Primarily Due to High Feed Prices

In Italy, the price of milk and dairy products has sharply increased during the past six months. Apart from rising energy costs affecting every stage of production, farmers are affected by other major challenges, including the recent drought, which has contributed to the reduced supply and consequently higher price of animal feed. Dairy cows are fed a combination of fodder, fava beans, soybeans, grain, and mineral supplements, the cost of which has increased significantly as a result of the Ukraine-Russia conflict and is further exacerbated by speculation in the raw commodities trade market. The spot price of milk has risen as a result by 55% YoY to USD 67.42/100 kg in comparison to November 2021. The cost in April 2022 was USD 48.53/100kg.