Despite promise, milk can cost 15 kronor per liter

Milk from one of Sweden's largest dairy producers – Arla – may become extremely expensive in rural areas, reports Swedish Radio. This despite the promise from Arla last year that they would not raise prices when they took over the smaller dairy producer Milko.

Smaller stores say they will have to raise the price of milk.

"No, it will be too expensive," says Torsten Kjällstrom, a customer at a small store in Jämtland. "But I don't have small kids, I don't drink a lot of milk. But for people who drink a lot of milk this is pretty sensitive."

When Arla bought Milko this past October they said milk would not be more expensive. But now Arla wants smaller stores who order less milk, to pay to get the milk delivered. For example, a store would have to pay a fee of around $US 30 when they placed an order for milk and dairy products worth between $US 150 and $US 300.

At a little store in Jämtland, the owner Tord Edler has to raise the price for a liter of milk from $US 1.50 to $US 2.15. He says otherwise he would lose money. "It would mean that there would be no milk here. Then I'd have to buy a cow," he says.

Arla is defending the decision to charge for small deliveries. They say it is neither economical nor environmentally friendly to deliver milk in small volumes.

"This is about the best way of delivering the product. If Arla should deliver the dairy products with our trucks or if we should deliver somewhere else, like to a wholesaler," says Claes Henriksson, press secretary at Arla.