Global factors will continue to be a significant factor in the dynamics of the UK dairy market, according to an executive at UK dairy firm Fayrefield Foods.

Neil McFarlane, a director at the UK dairy marketer and ingredients firm, said yesterday (14 October) that the global causes of this year’s rising dairy costs is a sign of things to come.

McFarlane cited this year’s drought in Australia and changing diets in Asia as two key factors behind the mounting costs of food producers both in the UK and overseas.

The rise in dairy costs, particularly in skimmed milk powder, has been “unprecedented”, McFarlane said. “No-one saw it coming. Great Britain is going to be more and more affected by world dairy events and we’re going to have to get used to more volatility in the market,” McFarlane told just-food.

McFarlane was speaking at the Anuga food and beverage trade show in Cologne, Germany, where Fayrefield Foods was showcasing its growing expansion into Europe.

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Fayrefield Foods, which owns brands including Collier’s Powerful Welsh Cheddar as well as developing functional foods and ingredients for industry customers, has this year opened offices in the Netherlands and Germany.

McFarlane said the hike in dairy costs could present an opportunity for his company. “Retailers are looking at anything because prices are on the way up; they’re looking for something different.”