Lactalis warns of price hikes amid Iran war disruptions
Lactalis warns that the Iran war is disrupting supply chains and raising costs. The dairy giant plans to increase consumer prices to offset these expenses.
Lactalis, the world's largest dairy company, has warned that the conflict involving Iran is causing significant supply-chain disruptions, which will likely lead to higher prices for consumers. The dairy giant cited rising costs for energy, transport, and packaging as primary drivers for the anticipated price adjustments across its global operations.
During a financial presentation in Spain, Lactalis Chairman Emmanuel Besnier explained that the company has been forced to reroute shipments away from the Strait of Hormuz, a vital maritime corridor. This disruption has left several cargoes of perishable items, such as cream and butter, stranded at sea or in ports, risking spoilage if they remain delayed.
