Pubs warned ‘dairy isn’t cheap any more’

Dairy is also seeing soaring prices, which has been blamed on rocketing feed costs as well as a myriad of other increasing prices that impact the category.

Buying specialist Lynx Purchasing managing director Rachel Dobson said: “All dairy products are seeing high levels of price increase and operators have to expect that to continue.

“Higher costs including feed, labour, fuel and transport are all factors when it comes to the price of milk, butter, cream and cheese, while the price and availability of eggs is also affected by the culling of poultry flocks due to avian flu.

“Dairy is widely used in both manufactured products and recipes made in the kitchen so its very hard for pubs to avoid the impact. However, there are many suppliers of dairy products.

“While they are all affected by rising costs, there may be benefits to operators in shopping around.”

Alternative options

In its Market Forecast Summer 2021​ ​report, Lynx revealed egg prices have seen sharp rises across the spring as a result of avian flu reducing the number of birds.

The report cited rising feed costs also having an impact on dairy products including cheese and cream for butter production.

It also advised operators to spotlight local and artisan cheeses as a premium cheeseboard option.

Dobson added: “It’s also important to think about the way dairy is used in the business. For example, where a recipe lists double cream as an ingredient, whipping cream may be just as good.

“Buying grated cheese may be more expensive than a block but it can also cut labour costs and reduce food waste and minimising waste can make a real difference to pubs’ buying costs.

“Dairy isn’t a cheap option any more so pubs will have to think more carefully about when and how they use it in the business.”

Fair supply chains

National Farmers Union dairy board chair Michael Oakes reiterated the rising costs of animal feed, citing an uplift of almost three quarters (70%) alongside fuel costs continuing to increase.

He said: “[This] means that for most dairy farmers the cost of production is much higher than the price they are currently receiving for their milk.

“We know the British public hugely value the high-quality, sustainable dairy products farmers produce.

“Farmers are not responsible for setting the price of milk for the public, so we’re asking for fairness across the whole supply chain to manage these inflationary pressures and to ensure farmers are being supported through these challenging times.”