Farm gate milk prices are rising as of Wednesday in Canada.
Three months ago, the 1er November, the Canadian Dairy Commission (CDC) authorized an increase of approximately 2.2%, or just under 2 cents per litre, effective 1er february.
The cost of milk used to make products such as milk, cream, yogurt, cheese and butter for the retail and restaurant sectors therefore increases by 2.2%, on average.
The Crown corporation, which oversees Canada’s dairy supply management system, explained its decision by the increase in production costs. The CDC observed that in the past year, producers have been struggling with a surge in the cost of feed, fertilizer, fuel and interest rates.
In addition, disruptions in the supply chain put upward pressure on the cost of inputs.
However, investments and productivity gains made on the farm offset some of these increases.
The Board notes that the net impact of the price adjustment on consumers will depend on factors such as transportation, distribution and packaging costs throughout the supply chain.
In 2022, the Commission had already approved two price increases: one of 2.5%, or approximately 2 cents per litre, in September and another of 8.4%, or 6 cents per litre, in February.
The CDC explained that the price of milk components is a factor that enters into the retail price of milk and that other factors, which occur throughout the supply chain, could affect the price of the final product of dairy products.