Consumers Expected to be Hit By Price Intervention17 January 2013
CYPRUS – The expected government imposition of a ‘milk price ceiling’ has drawn criticism from consumer advocacy groups, who have said the decision will have a detrimental effect on shoppers, reports the Cyprus Mail.
Wholesale and retail price caps are expected to come in at €1.41 and €1.32 respectively, industry sources told the Cyprus Mail.
Commerce Minister, Neoclis Sylikiotis, said he would exercise his powers in ordering a price ceiling delay for 45 days in order to protect consumers.
Government milk market intervention comes after after dairy farmers rallied at the start of January to increase raw milk prices by 4 cents a litre.
The government has been accused by consumer groups and processors of siding with producers as the consumer faces possible price increases in the supermarket.
Further fears are added by milk pasteuriser threats to halt milk processing operations until the issue of government control in the milk market ends.
The Pancyprian Cattle Farmers’ Organisation (POA) has countered stating that recent years have seen stable raw milk prices (around 48 cents per litre) but store shelves saw the price increase from €1.28 in 2008 and €1.40 2011.
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