Feta prices set to rise again in Greece amid milk supply squeeze
Consumers in Greece could face higher prices for feta cheese and other dairy products as declining sheep milk production, livestock losses and rising energy costs put further pressure on the sector.
Feta prices are expected to increase by around 5% to 9%, according to industry estimates cited in the report. The price of feta currently stands at around €12-13 per kilogram, while some supermarkets are already selling the cheese at prices approaching €16 per kilogram.
The pressure comes as producers face higher costs and a tightening supply of sheep milk, a key raw material for feta production.
SHEEP MILK SUPPLY FACES 100,000-TONNE SHORTFALL
The decline in sheep milk production is cited as one of the main factors behind the expected price increases.
Greece's total sheep milk production is estimated at around 700,000 tonnes, while the current shortfall is reported to have reached approximately 100,000 tonnes.
According to the figures cited in the report, around 60,000-70,000 tonnes of the gap is linked to livestock losses and disease, while a further 30,000 tonnes is attributed to increased export demand.
Livestock losses are reportedly approaching 600,000 animals, reducing the amount of raw material available for cheese production.
At the same time, Greek feta exports have increased by around 7%, adding further pressure to the available supply for the domestic market.
WILL FETA REACH €15-17 PER KILOGRAM?
The prospect of feta prices reaching €15-17 per kilogram is being treated more cautiously by industry representatives.
Pavlos Satolias, president of the Agricultural Dairy Cooperative of Kalavryta and a prominent representative of Greece's agricultural cooperative sector, does not expect feta prices to reach that level.
Satolias said increases in raw material costs could instead translate into an additional €1-1.50 per kilogram for the final product.
He said producers and processing companies had so far absorbed part of the rising costs themselves, but increasing energy prices and shortages of raw materials were making it increasingly difficult to continue doing so.
OTHER DAIRY PRODUCTS COULD ALSO BECOME MORE EXPENSIVE
The cost pressures are not expected to be limited to feta.
Yogurt and other dairy products made with sheep milk could also see price increases. According to Satolias, increases for these products could reach around 10% at the upper end, although the final increases could be lower.
The key question for the sector is how much of the rising production costs will be absorbed by farmers, processors and distributors and how much will ultimately be passed on to consumers.
The balance between those costs will be crucial in determining supermarket prices for feta and other dairy products in Greece in the coming months.
