The association of Hokkaido dairy farmers, known as Hokuren, has agreed with Japan's biggest milk manufacturers on price increases of as much as 24 percent for the next fiscal year as the cost of feed rises.
The association will raise the price of milk by 3 percent, or ¥3 per kg. The price of milk used for butter will be raised by 9 percent, or ¥5 , while that for domestic Gouda and cheddar cheese will be raised 24 percent, or ¥10, Hokuren said in a release posted on its Web site Thursday.
The increases, effective April 1, will be the first in 33 years for the association as the cost of feed grain rises, NHK said.
Farmers in Hokkaido supply almost half the milk consumed in the country, NHK said. The dairy companies, including Morinaga Milk Industry Co., Meiji Dairies Co., and closely held Nippon Milk Community, had already announced a plan to hike prices.
Corn prices rose 17 percent last year and gained 81 percent in 2006 on record demand for grain to make ethanol and feed for livestock. Soybean futures for March delivery rose 41 cents, or 3.4 percent, to $12.305 a bushel in Chicago Thursday.