Nestlé warns of global milk rises

Nestle has warned the global cost of milk was rising too fast and could have a serious impact on the industry with lack of supply. This is seen to be partly due to emerging market demands and globalisation.

As the world’s largest buyer of milk, Nestle is set to be seriously affected and it could be seen as a likely signal of rises in other food segments. The company’s exposure to emerging markets has put it in a particularly central position as it is dominant in areas where both population growth and consumption has risen dramatically, making milk prices soar in 2007. It expects profit growth to slow as a result.