Lactalis has warned that escalating geopolitical tensions linked to conflict involving Iran could lead to higher global dairy prices, as rising costs ripple through the supply chain. The company highlighted growing uncertainty in energy and logistics markets, which are key cost drivers for dairy production and distribution. The impact of higher oil prices is a central concern, as energy costs directly affect transportation, processing, and packaging across the dairy industry. Increased fuel expenses are expected to raise operational costs for processors, with potential consequences for both farmgate prices and consumer pricing. Lactalis emphasized that these pressures are being felt across multiple inputs, including raw materials and supply chain components. The combination of geopolitical instability and inflationary trends is creating a challenging environment for maintaining cost efficiency while ensuring consistent supply. From a dairy economics perspective, the situation ...