The price of feta in Greece could rise by as much as €2 per kilogram over the next two months, with some varieties potentially reaching €15 to €16 per kilo, according to the president of the National Interprofessional Feta Organisation.
Michalis Sarantis told ERTNews that the expected increase is being driven by a sharp reduction in sheep and goat numbers, falling milk production and continued strong international demand for Greek feta.
Feta currently sells for around €12 to €13 per kilogram on average, although prices vary depending on the producer, quality, packaging and whether the cheese is sold packaged or by weight.
Sarantis said sheep milk producers are seeking an additional 15 to 25 cents per kilogram for their milk this season compared with last year.
Producing one kilogram of feta requires approximately four kilograms of sheep or goat milk. The higher cost of raw milk could therefore add around €1 to €1.50 per kilogram to the production cost of feta before the increase reaches consumers.
The final retail increase could approach €2 per kilogram, although Sarantis stressed that individual supermarkets and producers will determine their own pricing.
Sheep and goat losses hit feta production
The latest pressure on feta prices comes after years of damage to Greece’s livestock sector from sheep and goat pox.
Almost 500,000 sheep and goats have been destroyed in Greece over the past two years as authorities and farmers have battled outbreaks of the disease.
The loss of livestock has significantly reduced the amount of milk available for cheese production.
According to industry estimates, sheep milk production has fallen by around 80,000 tonnes, potentially reducing annual feta production from approximately 140,000 tonnes to 120,000 tonnes.
That represents a significant reduction for a product whose production depends heavily on domestic sheep and goat milk.
Greek feta is also in high demand overseas
Exports are adding further pressure to the market.
Around 75 per cent of Greek feta production is exported, according to Sarantis, while exports continue to grow by approximately 6 to 7 per cent annually.
The strong international appetite for Greek feta provides an important market for Greek producers, but it also means there is less flexibility in the supply available to the domestic market when production falls.
Despite the reduction in output, Sarantis does not expect a feta shortage in Greek supermarkets.
He said producers have longstanding relationships with the domestic market and are expected to continue supplying Greek consumers.
If production becomes tighter, the industry could instead reduce some export volumes rather than allow feta to disappear from domestic shelves.
€16 is a forecast, not a fixed price
The potential €15 to €16 per kilogram price should not be interpreted as a mandatory new retail price for feta across Greece.
The current average remains around €12 to €13 per kilogram, while the eventual increase will depend on individual producers, supermarkets, product quality and packaging.
Sarantis also noted that he cannot predict the commercial pricing decisions of supermarket chains and manufacturers.
Some consumers may therefore see a smaller increase, while other products could approach the €2 per kilogram rise being forecast.
Why consumers will feel the increase later
The higher milk prices do not immediately translate into higher prices on supermarket shelves.
Feta needs to undergo a maturation process before it reaches consumers, meaning changes in the cost of raw milk take time to work through the supply chain.
The impact of the latest increase in milk prices is therefore expected to become more visible in Greek supermarkets over the coming weeks and potentially the next two months.
Feta prices highlight the pressure on Greek livestock farming
The situation also illustrates why the impact of the animal disease outbreak extends far beyond farmers.
Even if outbreaks are brought under control, rebuilding Greece’s sheep and goat herds and restoring milk production cannot happen quickly.
For consumers, that means the pressure on feta prices could persist beyond the immediate increase.
At the same time, Sarantis stressed that the pressure is concentrated primarily on products made from sheep and goat milk. The situation in the cow’s milk market is considerably more stable, meaning higher feta prices do not necessarily translate into higher prices across the entire dairy sector.
For Greek households, however, even a €2 increase matters.
Feta is a staple of everyday Greek cuisine, appearing on family tables alongside salads, vegetables, bread and countless traditional dishes. A move from €12 to €16 per kilogram would represent an increase of more than 30 per cent at the upper end of the forecast.
For one of Greece’s most recognisable national products, the combination of shrinking livestock numbers, reduced milk production and rising global demand is creating a difficult supply equation.
Source: ERTNews
