The Canadian Dairy Commission has approved a rare second milk price increase for this year.
The crown corporation, which oversees Canada’s dairy supply management system, says farm gate milk prices will increase by about 2 cents per litre, or 2.5 per cent, starting Sept. 1.
Milk prices have already increased by 6 cents per litre, or about 8.4%, on February 1.
The commission clarified that when it reviews prices as usual this fall, the September 1 price increase will be deducted from any adjustments for next February. Prices are generally revised once a year.
The Dairy Farmers of Canada had called in May for a mid-year milk price hike due to high inflation.
The industry lobby group says farmers are facing unprecedented price increases on the goods and services they need to produce the milk.
In a memo to supply chain stakeholders, including processors, retailers and restaurants, the commission explained that higher milk prices would partially offset higher production costs due to inflation. current.
“Costs associated with feed, energy and fertilizer have been particularly affected and have increased by 22%, 55% and 45% respectively since August 2021,” the commission said.
The new farm gate milk prices will become official when approved by provincial authorities no later than mid-July 2022.