Milk prices set to rise another 2.5% as dairy farmers get OK for cost hike

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The Canadian Dairy Commission has approved a uncommon 2nd beverage terms summation this year.

The Crown corporation, which oversees Canada's dairy proviso absorption system, said Tuesday workplace gross beverage prices volition spell up astir 2 cents per litre, oregon 2.5 per cent, connected Sept. 1.

The summation comes aft beverage prices rose six cents per litre, oregon astir 8.4 per cent, connected Feb. 1.

The committee said erstwhile it reviews prices again this fall, the mid-year terms summation approved for Sept. 1 volition beryllium deducted from immoderate accommodation for adjacent February. Prices are usually reviewed erstwhile a year.

The determination follows a petition by Dairy Farmers of Canada successful May for a mid-year beverage terms hike owed to precocious inflation.

The manufacture lobby radical said farmers are facing never-before-seen terms increases connected goods and services they request to nutrient milk.

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Dairy Farmers of Canada said the commission's determination to rise prices serves arsenic designation that farmers person been nether unit arsenic a effect of higher input costs.

"Dairy farmers are not the origin of the unprecedented planetary economical turmoil plaguing each sectors of the economy, but person to set to the conditions similar everyone else," the radical said successful a quality merchandise Tuesday.

Price summation astatine user level could beryllium higher

The committee said successful a memo that the summation successful beverage prices volition partially offset accrued accumulation costs owed to inflation.

"Feed, energy, and fertilizer costs person been peculiarly impacted, with increases of 22 per cent, 55 per cent and 45 per cent respectively since August 2021," the committee said.

The existent summation successful beverage prices for consumers could beryllium overmuch much arsenic assorted players successful the proviso concatenation could besides tack connected further terms increases.

"The interaction of these adjustments connected retail prices volition beryllium connected galore factors specified arsenic manufacturing, transportation, distribution, and packaging costs passim the proviso chain," the committee said.

Still, the summation approved by the dairy committee is overmuch little than immoderate manufacture observers were expecting.

"It could person been worse," said Sylvain Charlebois, Dalhousie University prof of nutrient organisation and policy.

"Based connected the information we were looking at, we were expecting an summation northbound of 5 per cent. I was expecting mode more."

The dairy committee has been nether unit successful caller weeks by assorted manufacture stakeholders to support prices manageable for Canadian consumers.

"The Canadian Dairy Commission is starting to perceive to Canadians and the concerns that radical person with nutrient inflation," Charlebois said. "The CDC tried to onslaught a equilibrium betwixt what the manufacture needs and what consumers are feeling."

Gary Sands, elder vice-president of nationalist argumentation with the Canadian Federation of Independent Grocers, agreed that the summation was little than anticipated.

Still, consumers tin expect to wage overmuch much than 2.5 per cent other owed to companies "piggybacking" their ain increases connected apical of the higher workplace gross terms for milk, helium said.

Meanwhile, successful a mandate missive sent to the chairperson of the Canadian Dairy Commission successful mid-April, Agriculture Minister Marie-Claude Bibeau outlined the request for greater transparency.

Bibeau said 1 of the priorities is for the committee to reappraisal its attack connected beverage pricing decisions to guarantee clearer and much transparent connection with Canadian consumers and dairy stakeholders.

The committee shared a quality merchandise connected the summation successful workplace gross beverage prices successful summation to informing stakeholders, including processors, retailers and restaurants, of the terms accommodation done a memo.

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