Butter and cream shortage likely by Christmas, warns Arla boss

Industry body Dairy UK confirmed that there had already been 'significant increases' in wholesale butter and cream prices recently

In the UK, Arla owns some of the best known dairy brands including Cravendale, Anchor, Lurpak and Castello (OLGA MALTSEVA/AFP/Getty Images)

The boss of one of Europe’s biggest dairy producers has warned that the UK could face a butter and cream shortage by Christmas because of a lack of milk.

Peter Tuborgh, chief executive of the farmer-owned firm Arla, told the BBC's Today programme that there was not enough milk available to make some dairy products because producers "put the brakes on" last year, in the wake of a previous over-production of milk, which had hit farmers hard.

A spokesman for industry body Dairy UK confirmed to the BBC that there had already been "significant increases" in wholesale butter and cream prices recently.

”To what degree price increases are transmitted to consumers is a matter for retailers," the spokesperson said.

Mr Tuborgh said that the effect of the milk dearth would play out differently in different markets and didn’t put a number on how much it might affect the UK market.

In the UK, Arla owns some of the best known dairy brands including Cravendale, Anchor, Lurpak and Castello. It is the largest supplier of butter, other spreads and cheese in the country.

The National Farmers Union told the BBC that while there had indeed been "record prices" for wholesale cream and butter in recent weeks, farm-gate prices had failed to keep up, which was "extremely concerning".

It also warned, however, that “scaremongering about lack of milk supply going forward only serves to concern consumers”.