Maltese milk brand Benna Increases Milk Prices Amid Rising Costs

Benna Raises Milk Prices

Benna, a popular dairy brand in Malta, has increased the prices of its milk and milk-based products by up to 15%. The decision was attributed to rising costs in various key areas, including raw materials, supply chain logistics, and global inflationary pressures.

Impact on Retailers

A one-litre carton of full-fat milk now retails for €1.23, reflecting a 7% increase, while prices for semi-skimmed and lactose-free milk rose by 5c. Skimmed milk prices increased by 2c, and Benna's Pro Milk saw a 15% hike, selling at €1.83.

MDP's Justification

Malta Dairy Products (MDP) attributed these price hikes to a rise in the costs of key raw materials, such as cocoa, whose market prices have significantly increased over the last 18 months. MDP stated they are absorbing some of these expenses and not passing on the full extent of cost increases to customers.

Financial Performance

MDP reported a €614,000 profit after tax in 2023, with revenues rising and sales costs decreasing compared to the previous year, which was impacted by the pandemic and geopolitical tensions.

Current Issues and Government Tensions

The company is a joint venture involving the Milk Producers’ Cooperative and the government. Previous price hikes have caused tensions, with the Agriculture Ministry asking the competition regulator to investigate. Additionally, there are ongoing disputes regarding the MDP's factory location.

These price hikes come amid a challenging period for consumers in Malta, with other companies like BCRS and telecoms firm GO also announcing price increases.