Rising dairy prices mean Britons will soon be asked to pay more for daily staples from ice cream to babyfood.

Though dairy farmers stand to gain, food manufacturers warned that hikes were inevitable as the cost of ingredients such as butter and milk powder continued to soar.

This week alone, butter rose €20 to €2,900/tonne (£1,985/t), whole milk powder increased €50 to €3,470/t (£2,375/t), with SMP up €70 to €3,500/t (£2,400/t).

Mark Gossage, chief executive of the Ice Cream Alliance, said ice cream manufacturers' costs had increased by 10% on the back of milk powder price hikes.

"I would expect price rises to consumers of at least that order. The question is when and how," he said.

Dairy Crest's milk purchasing director Arthur Reeves said it would be sooner rather than later. "Most dairy companies selling powder work on three-month contracts, so price rises could soon work their way through."

Nestlé UK declined to comment on possible price rises, but Bloomberg reported the company saying the price of some dairy products would increase by more than 10% this year. Hershey, the US chocolate manufacturer, and Unilever have both also warned of the effect of rising dairy prices. "We are facing a significant headwind from rising agricultural commodity costs, which may require further pricing action," said Patrick Cescau, Unilever's group chief executive. Its brands on the front line include Slim-Fast and Wall's.

Manufacturers of babyfoods were also worried, admitted Robin Semple of the Infant and Dietary Foods Association. Concern was also expressed by companies making everything from yoghurts and milk drinks to ready meals, biscuits and cakes.

"We see no reason for dairy prices to weaken in any ingredient, and the indications point to continuing rises," said Jim Hawkins at ingredients supplier Napier Brown.