Updated 3.40pm, adds Office for Competition statement
Benna fresh milk prices will increase for the first time in seven years, following a hike in the prices of the rest of the company’s dairy products last year.
As from July 29, the recommended price of whole milk will increase from 86c to 96c. Skimmed and 2.5% milk will both increase by 11c to the new prices of 92c and 94c respectively, the company said on Tuesday.
Similar increases will affect the rest of Benna’s milk product range.
The Office for Competition said in a statement in the afternoon it would be initiating an investigation to see whether the company was abusing its dominant position (see statement below).
The company’s other dairy products increased in price last year, with the company at the time not ruling out an eventual rise in milk prices.
In a statement on Tuesday, Malta Dairy Products said the costs of feeds on the international markets, as well as other operational costs had increased considerably since the last price hike.
“The adjustment in price of Benna fresh milk is at this point necessary to sustain
the livelihood of the dairy herdsmen who have benefitted from an increase in price for their fresh milk,” the company said.
“This adjustment will also sustain farmers, who grow forage on 39.3% and 68.8% of arable land in Malta and Gozo respectively and the workers involved in its production, as well as ensures that the best quality product continues to reach the consumer.”
Malta Dairy Products said the price adjustment was limited to the general rise in food prices as measured by Eurostat over the past seven years, and that it would continue to expand the range of products on the market.
It added that its fresh milk would remain “very competitively priced” compared to milk sold in other EU countries.
“Malta Dairy Products Ltd. is confident that customers will understand the importance of sustaining the local dairy and agricultural sectors and will continue supporting the supply of fresh milk and fresh milk products which are superior in taste, nutritional value and quality,” the company said.
“We would also like to take this opportunity to thank all of our customers for their continuous loyalty towards Benna products.”
Office for Competition statement
In a statement, the Competition Office said it would be initiating an investigation to see whether the company was abusing its dominant position in breach of the Competition Act through the increase.
The office said that although MDP was free to establish the pricing of its products, since the Benna fresh milk product range could hold a strong market position, any price increase could not be excessive to the detriment of consumers.
The company was last year advised that should any price increase take place, the office would request details of how the increase was established.