3 Sept - French cheese manufacturer Bongrain has unveiled plans to “significantly increase” its prices next week because of the soaring cost of milk.
Bongrain Director General Pascal Breton said the company had no choice but to pass on the “exceptional” upward trend in milk prices to its customers.
The announcement comes after the company recorded a 65% year-on-year drop in its 1H 2008 net profits, which fell to EUR 22.6 million.
Mr Breton said the price of milk had risen 30% since the beginning of the year with no sign that prices were likely to fall immediately. However, he said that while prices may ease from their current levels, the overall increase for 2008 could be as much as 20%.
The Bongrain chief confirmed negotiations for its major contracts would be completed in the next few weeks, saying the raised tariffs for milk would have an effect on the prices it would charge its distributors.