Malta: Price of milk increased to ‘fund new dairy factory’
Source: The DairyNews
Financial Strains Lead to Milk Price Hike as Malta Dairy Products Seeks New Factory Funding
In response to the government's refusal to finance a new dairy factory, Malta Dairy Products, the force behind Benna milk, has implemented a second price increase in six months to generate funds for the much-needed facility. Facing accusations from the government regarding financial mismanagement and failure to reinvest pre-COVID profits, the company is caught in a tug of war over its future direction.
The government, which holds a 30% stake in Malta Dairy Products, contends that the company should have earmarked funds for the new factory instead of facing financial difficulties. Despite offering alternative land in Luqa for construction, the government faces reluctance from the company to involve local investors, opting instead for a price hike to secure profits for the project.
The ongoing dispute centers on the company's factory in Ħamrun, requiring maintenance and new equipment. The government's proposal to transform the site into a garden with underground parking raises speculation about potential developments linked to Ħamrun Spartans football club.
As Malta Dairy Products contemplates leaving Ħamrun, questions arise about the government's continued involvement. A spokesperson for the company emphasizes the mounting input costs leading to the price hike while acknowledging government prerogatives to reassess involvement or explore alternative options.
The uncertainty surrounding the situation prompts speculation about the government's potential exit from the company, while Malta Dairy Products remains focused on ensuring the long-term sustainability of the company and the supply of high-quality dairy products.
The government, which holds a 30% stake in Malta Dairy Products, contends that the company should have earmarked funds for the new factory instead of facing financial difficulties. Despite offering alternative land in Luqa for construction, the government faces reluctance from the company to involve local investors, opting instead for a price hike to secure profits for the project.
The ongoing dispute centers on the company's factory in Ħamrun, requiring maintenance and new equipment. The government's proposal to transform the site into a garden with underground parking raises speculation about potential developments linked to Ħamrun Spartans football club.
As Malta Dairy Products contemplates leaving Ħamrun, questions arise about the government's continued involvement. A spokesperson for the company emphasizes the mounting input costs leading to the price hike while acknowledging government prerogatives to reassess involvement or explore alternative options.
The uncertainty surrounding the situation prompts speculation about the government's potential exit from the company, while Malta Dairy Products remains focused on ensuring the long-term sustainability of the company and the supply of high-quality dairy products.
