Meiji Dairies Corp. and Morinaga Milk Industry Co. will raise milk prices next year for the first time in 30 years as increases in grains, petroleum and other raw materials add to production costs, the companies said Tuesday.
The nation's largest and second-biggest milk producers will pass on higher costs to consumers after agreeing with a farmers' organization Monday on a 3 percent increase in raw milk prices from next April.
Farmers are facing rising costs to feed cows as prices of corn, soybean meal and barley increase because of demand for grain used in biofuels. Soybeans, crushed to produce livestock feed and oil, reached a 34-year high in Chicago trading Monday after growers switched to corn for ethanol.
"We are considering raising milk prices by at least 3 percent," said Hidehiko Yonezawa, a spokesman for Meiji Dairies. "In addition to raw milk, costs for other raw materials are also rising."
Morinaga will decide on the size of its price hike later.
S&B's spicier prices
Kyodo NewsS&B Foods Inc. said Tuesday it will raise the prices of 785 products, including seasonings, by 5 percent to 10 percent on March 1 due to stronger demand pushing up ingredients costs.
The company is hiking home-use product prices for the first time since 1990.