Christmas butter and cream shortage predicted

Butter and cream could be in short supply and substantially more expensive by the time we reach Christmas, the head of daily giant Arla warned.

"It's not the first time in recent years that we've had dark warnings of no cream with our mince pies," says the BBC.

"But hearing it from the boss of the world's fourth-largest dairy company carries some weight."

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After a glut of milk, much of it from Europe, caused prices paid to farmers to plummet over the past two years, producers have scaled back output, says Arla.

"There was insufficient milk being supplied by farmers to make the products," Peder Tuborgh, chief executive, said.

That's only part of the reason: Simon Clapp, from Brue Valley Farms near Glastonbury, says the slump in the pound has reduced export prices and increased overseas demand for British dairy milk.

Added to that, more butter is now being consumed and less skimmed milk is being drunk, which reduces the supply of cream, Katie Prescott, BBC Radio Four's Today programme business presenter, said.

All of which means the wholesale price of dairy and cream has "doubled in the past year".

Farmers themselves are doubtful of a shortage and say they are not seeing the benefit of changes in wholesale prices.

Although prices are up on last year, they fell 0.6 per cent in June compared to May.

A spokesman for the National Farmers Union said: "Scaremongering about lack of milk supply going forward only serves to concern consumers.

"It's no surprise that milk buyers are worried about milk volumes falling.

"Confidence within dairy farming is at an all-time low - mistrust in the market dynamics and suspicion about how milk buyers are treating their supply base coupled with the lack of direction on the impact of Brexit on the dairy sector."