consumer

Price of milk goes up

Estrella Azul announces price increases for 434 of its product lines, including milk and fruit drinks.

JORGE FERNÁNDEZ/LA PRENSA

Another increase. Estrella Azul, the leading provider of milk and milk products in Panama, announced that it will raise prices due to higher operating costs.965244

Residents and visitors to Panama had better prepare themselves for another price increase in early January.

Estrella Azul, the dairy industry leader in Panama and maker of refreshment drinks and the fruit juices Pera Néctar y Melo Néctar, yesterday announced price increases for its products beginning Jan. 16, with the exception of cheese.

A liter of Estrella Azul milk will rise in price from .85 to .95 cents, confirmed Frank Tedman, the company's operations manager. Tedman said the increase is due to higher operating costs, including the price of plastic, fuel and a 20% rise in electricity costs.

The Asociación Nacional de Ganaderos de Panamá reports that dairy processing companies have raised the price of milk .20 cents a liter since June 2007, to which must now be added Estrella Azul'a .10 cent increase.

According to Tedman, 434 of its product lines will see varying price increases. The price of its fruit punches, for example, will increase from .15 to .20 cents.

Estrella Azul buys 49 million liters of Panamanian milk for processing. That represents 35 percent of the total national production.