Dairy farmers are seeing the cost of feed jump and are finally able to pass that on to consumers.

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If a natural gas producer can enter five-year-forward contracts, why can't a dairy farmer smooth out his cash flow by linking feed and milk prices?

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Hassan Radmard, head of trade development at the Ministry of Trade and Industry, said Monday that the increase in prices of poultry and dairy products was a result of difficulties in buying animal feed, transporting goods from ports and completing financial transactions because of sanctions, official student news agency ISNA reported.

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The price of milk, cheese and other dairy products is also expected to surge, while ranchers face steepening feed costs.

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The NFU said contractors providing silage for feed were concerned that because of the recent hike in diesel prices, dairy farmers would have difficulty in meeting their charges.

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Mr Rowbottom said he left dairy farming 15 months ago, partly due to the state of the industry, but still runs an agricultural feed business alongside a sheep farm at Ipstones.

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