Sylvain Charlebois, the author of the opinion piece “Le lait à prix d’or”* waters down the issues related to the increase in the price of milk. A complete portrait must take into account a set of considerations. Here are a few for your readers.
Posted at 2:00 p.m.
Inflation, caused by the pandemic, spares no one, including dairy farmers. Has your tank of gas skyrocketed? It’s no different for tractors on the farm! The cost of fuel is up 30%, while that of animal feed has risen by 27% in two years, and that of seeds by 20%. The cost of farm machinery, already high before the pandemic, has seen a 20% increase.
It is important to know that the price of milk at the farm can decrease according to production costs and has already done so.
However, other actors in the supply chain have not adjusted their prices to consumers. Some are reporting increases in the price to consumers well beyond that of the price of milk at the farm gate.
Unlike large retailers who pass on their increases without providing an explanation, dairy farmers have to go to the Canadian Dairy Commission (CDC), a crown corporation, for a farm gate price adjustment. The latter must hold consultations with other players in the supply chain, including processors, retailers, the restaurant sector and consumer representatives before determining the increase. No other of these players is subject to such transparency.
Retailer practices deserve more attention. Who knows, maybe even Mr. Charlebois?