Do you want cream with that? It’ll cost you more, warns dairy giant

Dairy giant Arla has warned that the UK could face a butter and cream shortage at the end of this year after claiming that insufficient milk is being supplied by farmers.

The UK’s largest buyer of milk has suggested that prices will have to rise at consumer level, an implication that the National Farmer Unions (NFU) has called ‘scaremongering’.

The alleged shortage has been generated, according to Arla, by a previous over-production of milk, and subsequent lower prices, which has caused milk producers to reassess their production levels.

Wholesale cream and butter prices have been soaring of late, but the NFU says that farm-gate prices have not kept up.